Lenovo resumes talks to buy IBM unit: source

NEW YORK Mon Jan 20, 2014 1:27pm EST

Lenovo tablets and mobile phones are displayed during a news conference on the company's annual results in Hong Kong May 23, 2013. REUTERS/Bobby Yip

Lenovo tablets and mobile phones are displayed during a news conference on the company's annual results in Hong Kong May 23, 2013.

Credit: Reuters/Bobby Yip

Related Topics

NEW YORK (Reuters) - China's Lenovo Group Ltd has resumed discussions to buy International Business Machines Corp's low-end server unit, a source familiar with the matter told Reuters.

The two companies were in discussions to buy the division last year, but no deal was made as they couldn't agree on a price, sources have said.

It was unclear how far along the more recent talks were, or what prices were being considered.

An IBM spokesman said on Monday the company wouldn't comment on the report, nor on similar reports in other media outlets.

Bloomberg, citing a person with direct knowledge of the matter, said Lenovo was in serious discussions to buy the unit and that a deal may be signed within weeks. The Wall Street Journal, also citing unnamed sources, said Dell Inc may be among the potential buyers, though it was unclear how serious Dell was.

Dell went private in a $25 billion deal last year, following prolonged troubles at the computer maker.

IBM's x86 server business sells servers used to power corporate data centers. Last year, Lenovo put the value of the division at below $2.5 billion, according to the Wall Street Journal.

(Reporting by Ryan Vlastelica and Devika Krishna Kumar; Editing by Peter Galloway)

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (2)
UScitizentoo wrote:
> Lenovo for those who..
..support Military communist China, suppressed wages, industrial espionage, intellectual property theft, suppression of free speech, criminal drug gangs and north korea. And if you did support them, you would be in good company with 100% of the fascist US congress on your side. Meanwhile, US jobs go down the drain and the Military Communist Chinese get stronger and stronger and own parts for our military planes, and our corporate laptops, and our corporate servers…

Jan 20, 2014 1:59pm EST  --  Report as abuse
Randy549 wrote:
A lot of the employees there are already based in China, so it would be a change in ownership and name only.

Jan 20, 2014 10:45pm EST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.