Lenovo Back in Talks for IBM's x86 Server Business: Reports
A year after previous talks broke off, the companies reportedly are negotiating a deal that would bring IBM's low-end server unit to Lenovo.Lenovo reportedly is back in negotiations to buy IBM's low-end x86 server business, a move that would give the PC maker's data center ambitions a boost while enabling Big Blue to shed another low-margin commodity business as it looks to focus more of its efforts on software and services. Talks between the two vendors reportedly broke off last year after a disagreement on the value of the IBM business, but recent financial numbers indicating the hardware business becoming a larger drag on IBM's bottom line may be compelling the larger company to return to the negotiating table. Some reports indicate IBM also may be talking to newly-private Dell. A deal between Lenovo and IBM could be signed within weeks, an unnamed source told Bloomberg. Spokespeople for both IBM and Lenovo said the companies do not comment on speculation.
However, in a notice sent Jan. 21 to the Hong Kong Stock Exchange, Lenovo Chairman and CEO Yang Yuanqing noted that his company is in "preliminary negotiations with a third party in connection with a potential acquisition," though he added that no deal had been agreed upon. He said the notice came after Lenovo's Board of Directors "noted certain articles published in the internet in relation to a possible acquisition by the Company of certain computer server business."