You can satisfy all linked server requirements in the provider string.
The catalog is normally SYSIBM, which is DB2 master DB dictionary.
Server is the DB2 subsystem.
Provider string should look like this:
'Initial Catalog=SYSIBM;Data Source=DB2SUBSYS;HostCCSID=1252;Network Address=XYZ;Network Port=50000;Package Collection=admin;'
NOTEs on provider string:
1-Initial Catalog is the DB2 dictionary; normally SYSIBM
2-Data Source is the DB2 subsystem[aka engine or instance]
3-HostCCID is the code page and for latin installations it can be 37, 437, 500, 1252
4-Network address is the TCP/IP address
5-Network port is the DB2 TCP/IP port and is normally 420
6-Package collection : is a little tricky; make sure the DB2 administrator gives you the name of one with permissions over it. MS HIS2000[in case you use it] ships with a utility called (CRTPKG) which helps create the needed package; but it can only be run by the DB2 administrator. A DB2 Package gives you permissions over the different DB isolation levels. Nrmally you need permission over the Cursor Stability level (CS)... which is similar to SQL optimistic isolation level or Oracle MutiVersioning.
Big Assumption: i am assuming DB2 can be accessible from TCP/IP, which may not be the case for your installation. So you need to further setup an LU6.2 connection parameters within the Provider String. Your DB2/VTAM administrator should help you with it. If still in need of more info let me know.
Good luck