IBM Said to Reject Globalfoundries Offer for Chip Unit

International Business Machines Corp.’s talks to sell its money-losing chip-manufacturing operations to Globalfoundries Inc. have ended after the two companies failed to agree on terms, according to people familiar with the process.

Globalfoundries, owned by an investment arm of the government of Abu Dhabi, made an offer that was rejected by IBM as too low, said the people, who asked not to be identified because the negotiations are private. James Sciales, a spokesman for IBM, and Kevin Kimball, a spokesman for Santa Clara, California-based Globalfoundries, both declined to comment on speculation.