IBM Corp (IBM.N) is in negotiations to sell its x86 server hardware business to Chinese computer maker Lenovo Group (0992.HK), 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. (link.reuters.com/zad57t)
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.
(Reporting by Tej Sapru in Bangalore; Editing by Phil Berlowitz)