The below is the script that i used for creating linked server. Kindly let me know how to resolve this issue.

USE [master]

GO

/****** Object: LinkedServer [IBASE] Script Date: 11/18/2014 1:17:55 AM ******/

EXEC master.dbo.sp_addlinkedserver @server = N'IBASE', @srvproduct=N'Microsoft OLE DB Provider for DB2', @provider=N'DB2OLEDB', @datasrc=N'P08', @provstr=N'Initial Catalog=ECCVPDB;Data Source=P08;Package Collection=admin;Default Schema=admin', @catalog=N'IBASE'

/* For security reasons the linked server remote logins password is changed with ######## */

EXEC master.dbo.sp_addlinkedsrvlogin @rmtsrvname=N'IBASE',@useself=N'False',@locallogin=NULL,@rmtuser=N'IKEAPP',@rmtpassword='########'

GO

EXEC master.dbo.sp_serveroption @server=N'IBASE', @optname=N'collation compatible', @optvalue=N'false'

GO

EXEC master.dbo.sp_serveroption @server=N'IBASE', @optname=N'data access', @optvalue=N'true'

GO

EXEC master.dbo.sp_serveroption @server=N'IBASE', @optname=N'dist', @optvalue=N'false'

GO

EXEC master.dbo.sp_serveroption @server=N'IBASE', @optname=N'pub', @optvalue=N'false'

GO

EXEC master.dbo.sp_serveroption @server=N'IBASE', @optname=N'rpc', @optvalue=N'false'

GO

EXEC master.dbo.sp_serveroption @server=N'IBASE', @optname=N'rpc out', @optvalue=N'false'

GO

EXEC master.dbo.sp_serveroption @server=N'IBASE', @optname=N'sub', @optvalue=N'false'

GO

EXEC master.dbo.sp_serveroption @server=N'IBASE', @optname=N'connect timeout', @optvalue=N'0'

GO

EXEC master.dbo.sp_serveroption @server=N'IBASE', @optname=N'collation name', @optvalue=null

GO

EXEC master.dbo.sp_serveroption @server=N'IBASE', @optname=N'lazy schema validation', @optvalue=N'false'

GO

EXEC master.dbo.sp_serveroption @server=N'IBASE', @optname=N'query timeout', @optvalue=N'0'

GO

EXEC master.dbo.sp_serveroption @server=N'IBASE', @optname=N'use remote collation', @optvalue=N'true'

GO

EXEC master.dbo.sp_serveroption @server=N'IBASE', @optname=N'remote proc transaction promotion', @optvalue=N'true'

GO