Internet server and software maker Sun Microsystems might be a tempting takeover target for acquisition by Hewlett-Packard, Fujitsu or another tech giant, it was reported yesterday.

The speculation was prompted by a sliding share price and gloomy forecasts for Sun Microsystems, according to the San Jose Mercury News.

A sale would be momentous, involving billions of dollars and spelling the demise of one of Silicon Valley's most venerable companies, said the report.

But no one has confirmed any talks. A Sun Microsystems spokesman declined to comment on the prospect of a sale.

Executives at Sun Microsystems have continued to voice confidence in their strategy for turning the company around, said the report.

Sun's stock price has improved since hitting a 52-week low of US$8.63 in mid-July, closing at US$10.18 Tuesday. That's less than half its October peak price of US$25.04.

This has led some investors to wonder about Sun's future.

With annual sales of US$13.9 billion and a workforce of nearly 35,000 worldwide, Sun is the seventh-largest company based in Silicon Valley. Founded in 1982, it has a reputation for pioneering workstations, servers and software.