Lenovo Resume Talks on Plans to Purchase IBM
Lenovo Group Ltd. is resuming their talks in buying International Business Machines Corporation low end server unit which a purchase that is said to bolster Lenovo efforts in diversifying beyond the shrinking personal computer market. Although the two companies has failed to reach a deal last year after a debate in prices, the media is now reporting that IBM is hoping that the new price will be between US$ 4 billion to 6 billion for the unit, but Lenovo is only willing to pay around US$2.5 billion.
Lenovo is the world largest personal computer maker said that they are in preliminary talks on the acquisition, they have declined to name the seller but said that is was making a statement in response to reports on their potential acquisition of the server business. IBM still has no comment on the matter. Dell Inc. also went private in a US$25 billion deal and s rumored to be a potential suitor for the business, nut a spokesperson for Dell in Beijing declined to give out any comments.
The deal for IBM x86 servers that powers corporate data centers is a perfect fit for Lenovo which is attempting to remold itself in mobile devices and data storage servers, while IBM is shifting away from hardware towards software and services. Financial experts are saying that both parties could win since IBM can double its profitability but its still not good enough for IBM.