Article: Gloom Around Apple Deepens As Investors Knife the Mac

NEW YORK Apple Computer Inc.'s stock dropped 6 percent Tuesday, edging closer to the $23 price at which Sun Microsystems Inc. reportedly made a takeover offer last week.

Apple shares closed down $1.81 1/4 to $27.31 1/4, a 6 percent drop, on the Nasdaq Stock Market. The decline followed a 5 percent drop Monday as investor hopes faded that a better takeover offer would emerge.

The stock had been buoyed last week by conflicting reports about Sun's interest in Apple, including one that said the workstation maker had offered $33 per share.

Investors Tuesday also had news accounts of an Apple internal memo that ordered a halt on new spending for research and development.

The memo, by ...

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