SAN FRANCISCO May 1 IBM and Lenovo
have called off negotiations over a
multibillion-dollar deal in which the Chinese company would have
bought Big Blue's low-end server business, Fortune magazine
cited unidentified sources as saying on Wednesday.
Talks between the two companies were halted after
disagreement over the valuation of a business that sells servers
used to power corporate datacenters, the business magazine cited
a person familiar with the discussions as saying. It added that
the negotiations could still resume.
News of the talks surfaced last month, when industry
newsletter CRN reported that IBM was looking to unload its "x86"
server hardware division for as much as $6 billion. The Asian
company, now ranked consistently among the world's three-largest
PC makers, balked at that price, Fortune reported.
The proposed acquisition recalls a 2005 deal in which the
U.S. enterprise computing giant sold its PC-making business to
Lenovo for $1.25 billion.
The move vaulted a midsized Asian company into the top ranks
of the global PC sector, and allowed IBM to effect a successful
transformation into a software and solutions-oriented player.
Reuters has not independently confirmed the status of their
negotiations, and IBM declined to comment on Wednesday.
Lenovo has said it was in preliminary talks about a
potential acquisition but has not identified the target. Company
representatives were not available for comment outside of normal
business hours in Hong Kong on Wednesday.