China's Lenovo nears deal to buy IBM's server unit -source

Wed Jan 22, 2014 7:24pm EST

Jan 22 (Reuters) - Lenovo Group is close to an agreement to buy International Business Machines Corp's low-end server business, according to two people who are familiar with the matter.

A deal could come as soon as Thursday if all details are finalized, one person said.

While the exact price could not be determined, Lenovo is expected to pay less than $2.5 billion for the unit, the sources said.

The timing of the deal was first reported by the Wall Street Journal, citing sources.

Reuters had reported on Tuesday that Lenovo had restarted talks to buy IBM's x86 server business after failing to reach an agreement last year following differences on pricing.

Lenovo said on Monday that it was in negotiations with a third party regarding a potential acquisition but stated that no material terms of the deal had been agreed upon.

Recent reports have also indicated that Fujitsu Ltd and Dell Inc are also potentially interested in buying the server unit, which powers corporate data centers.