Lenovo talks potential acquisition
IBM's ex-PC biz goes south?
Lenovo, the Beijing-based PC manufacturer that acquired IBM's PC unit for $1.75bn in 2005, is in talks to buy another computer builder, this time in Brazil.
The company, the world's fourth-largest supplier of computers, said Thursday it had held "certain preliminary discussions with independent third parties" on acquisition or investment.
A company spokesperson would not confirm or deny whether one of those third parties is Brazilian PC manufacturer Positivo Informatica, as reports have said.
In a prepared statement, Lenovo said no transaction was under way and "there is no assurance that any definitive agreement will ultimately be reached" with the organizations it has been talking to.
The disclosure comes as Lenovo saw its profits nosedive during its recent second quarter despite an increase in sales. Chairman Yang Yuanqing blamed the global economic downturn and a shortfall in executing the company's strategic plan.
Reports said Lenovo is trying to reduce its over-reliance on corporate business IT, which has suffered in the wake of the economic slow-down. Positivo Informatica has around 20 per cent of the Brazilian PC market, with its customer base primarily in the consumer space and government, the Financial Times said. ®