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Friday, April 19, 2013
Lenovo in Talks to Buy IBM Server Business
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Chinese PC maker is reportedly a bidder for parts of IBM?s server division, according to a report.
Bloomberg today cited a "person familiar with the matter" to report that IBM's servers business may fetch $2.5 billion to $4.5 billion depending on what assets and liabilities are included.
"No material terms concerning the potential acquisition have been agreed and the company has not entered into any definitive agreement," Lenovo said in the statement.
IBM said on the company's earnings call that he wouldn't comment on rumors.
In 2005, Lenovo purchased IBM's PC unit. Under the current circumstances with the PC market to keep declining, the Chinese company is diversifying with new products including tablets and smartphones. Lenovo has already striked a deal with EMC Corp to boost sales of storage equipment and servers. Buying IBM's server business could further help the company expand to the fast-growing low-cost, energy efficient server market.
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