Lenovo says will not buy Positivo now

BEIJING (Reuters) - Lenovo Group, the world's No. 4 personal computer maker, said on Thursday it had agreed with Brazil's biggest PC maker, Positivo Informatica (PI), that an acquisition by Lenovo was not now possible.

"Lenovo and Positivo agree that given the current economic turmoil and uncertainties, it is not feasible to reach an agreement on a transaction at this time," Angela Lee, a Lenovo spokesperson based in Hong Kong, told Reuters.

Lenovo along with its global rivals are facing slowing demand as the world economy struggles with recession and companies cut back on tech spending.

Lenovo continues to look at ways to grow its business organically and through mergers and alliances, said Lee, who did not rule out an acquisition down the road.

"The companies are exploring a broad strategic alliance that would create long-term shareholder value for both companies," Lee said.

Lenovo is sitting on a big cash pile, and has said it is open to acquisitions amid an expected consolidation in the PC industry, but has not named any potential targets.

Brazilian media have reported that both Lenovo and possibly larger rival Dell were interested in Positivo.

(Reporting by Kirby Chien, Editing by Jacqueline Wong)