IBM Says It’s in Talks to Sell Global Network Business

International Business Machines Corp. confirmed Monday that it’s talking with telecommunications and other companies about selling its Global Network business to focus on the software and services related to the computer network.

The Armonk, N.Y.-based company said it has been talking with “a number of interested parties, including major telecommunications companies.” Merrill Lynch & Co. is advising it on the sale.

IBM’s statement comes two weeks after people familiar with the plan said the world’s biggest computer maker was looking to sell the network for $3 billion to $4 billion. The network provides consumer hookups to the Internet and is used by companies to send information worldwide.

Companies that have shown interest in the business are SBC Communications Inc., Ameritech Corp., US West Inc., GTE Corp., AT&T; Corp., British Telecommunications and several Internet providers, a person familiar with the plan said this month.

IBM declined to comment on the value of the network, nor would it discuss potential buyers.

As part of the sale, IBM is expected to require the buyer to make the network available to the company and its customers.

That will let IBM continue to hook up corporations to the network and sell the required software and maintenance services, a big part of its services operations that help customers set up and run computers and IBM’s only consistently expanding business.

IBM’s Global Network has about 1,300 gateways to the Internet in 53 countries and offers services in 900 cities in 100 countries, making it a force in global communications.

IBM shares rose $2.56 to close at $129.13 on the New York Stock Exchange.