Sun Microsystems' potential $7bn takeover by IBM remained in limbo yesterday after Sun's refusal to agree to a deal on its current terms - which prompted IBM to withdraw its bid over the weekend - left the companies grappling over whether to rekindle talks.

Sun's board was scheduled to meet yesterday as concern grew that a split between Jonathan Schwartz, chief executive, and Scott McNealy, chairman, prompted some to wonder whether Mr McNealy was fundamentally opposed to a deal. He has pushed for a higher price, according to people close to the matter.