IBM in talks to sell low-cost server business to Lenovo -CRN news site

April 18 Thu Apr 18, 2013 7:27pm EDT

April 18 (Reuters) - IBM Corp is in negotiations to sell its x86 server hardware business to Chinese computer maker Lenovo Group, technology news site CRN reported on Thursday citing sources with knowledge of the situation.

IBM is looking for between $5 billion and $6 billion for the business, which sells low-priced servers traditionally used to power large corporate data centers, CRN said citing a high ranking industry executive.

IBM Chief Financial Officer Mark Loughridge said the company would not respond to rumors when asked about the CRN story on a post earnings conference call.

IBM, the world's largest technology services company, reported an increase in first-quarter earnings on Thursday, but missed estimates due to the depreciation of the Japanese yen.

Lenovo could not be reached for comment by Reuters outside of regular business hours.

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