Lenovo eyes takeover, with IBM server unit in focus

Jan 21, 2014

Chinese computer giant Lenovo said Tuesday it is in negotiations on a "potential acquisition," following media reports the deal could be for IBM's server division.

In a letter released to shareholders, Lenovo said its board "noted certain articles published in the Internet in relation to a possible acquisition by the company of certain computer server business."

The letter added that Lenovo "is in preliminary negotiations with a third party in connection with a potential acquisition" but that there has been no agreement on any deal.

"The board will make further announcement as and when necessary in compliance with the listing rules and applicable laws when a legally binding agreement is signed or there is substantial development," the statement added.

While Lenovo offered no details, various media reports said the PC maker is in talks with IBM for a purchase of the US firm's server operations.

The Wall Street Journal said a deal would likely involve the "low-end" server business to help the Chinese firm compete in that segment with US rivals Dell and Hewlett-Packard.

The report said Lenovo and IBM renewed talks that began last year when IBM wanted to sell all or part of the so-called x86 server business. The Journal said Dell also may be interested in the unit.

The reports said Lenovo, which according to surveys has become the largest vendor of PCs, is seeking to diversify away from the slumping segment, and that the could help it get more enterprise customers.

Explore further: Shares of China's Lenovo fall after report of BlackBerry bid

add to favorites email to friend print save as pdf

Related Stories

Lenovo hires Kutcher to design, pitch new tablet

Oct 30, 2013

Computer-maker Lenovo has hired tech-savvy actor Ashton Kutcher to help design and pitch its latest line of tablets, dubbing the Hollywood star a "product engineer" who can bring his ideas along with his ...

Japan's Sharp in TV tie-up talks with Lenovo

Jan 17, 2013

Shares in struggling Japanese electronics maker Sharp shot up 7.30 percent on Thursday on reports it is in talks with Chinese computer giant Lenovo Group to work together on the production of televisions.

Lenovo sees PC market growth in hybrid models (Update)

Sep 05, 2013

(AP)—Lenovo is hoping hybrid computers—which can turn from laptops into tablets with a flip of the lid—will spur growth in the ailing PC market and win back consumers who are attracted by sleek, lightweight ...

Recommended for you

Chinese e-commerce rivals challenge Alibaba (Update)

4 hours ago

China's biggest property developer, Wanda Group, and Internet giants Baidu and Tencent unveiled a new e-commerce venture Friday in a challenge to industry leader Alibaba Group ahead of its U.S. stock offering.

Nigeria launches national identity card scheme

17 hours ago

Nigeria's President Goodluck Jonathan on Thursday launched a national electronic identity card scheme, which backers said would boost access to financial and government services in Africa's most populous nation.

Vivendi, Telefonica in talks over Brazil business (Update)

Aug 28, 2014

French media conglomerate Vivendi said Thursday it would begin exclusive talks with Spanish telecoms company Telefonica for the sale of its Brazilian operator Global Village Telecom, or GVT, after the Spanish company raised ...

User comments : 0