Lenovo and IBM server business acquisition negotiations fail

Beijing time on May 2, according to foreign media reports, according to people familiar with the news that is between lenovo and IBM “lenovo will part with billions of dollars bought IBM server business” of trade negotiations have failed. It is said that the two sides of valuation concerns may be the main cause of the failure.

, according to people familiar with the talks may be back again, though, but has now ended because of the valuation concerns.

at present, lenovo and IBM’s spokesman did not comment on the rumours.

just last month, talks on the lenovo and IBM rumors began to appear in the media, and the news has been confirmed that the wealth (Fortune). Bloomberg said at that time, IBM will likely be the so-called X86 server business sales to lenovo, the possible transaction price is estimated to be between $2.5 billion to $4.5 billion. Other media, however, say that IBM hopes to market price of $6 billion. There are news that marked IBM’s market price is $5 billion, accounts for about a third of the total revenue, IBM server to this price, lenovo is unwilling to accept.

lenovo, the world’s second-largest computer maker after hewlett-packard (), always want to be able to support the development of their own server business. X86 server now although is still a low-end server, but can help the company to compete with HP and dell.

in 2005, lenovo bought IBM’s PC business, in the last few years since then, lenovo’s growth has been faster than the competition. According to the report, according to IDC, especially in the latest quarter, in PC sales presents the largest in the history of the industry downturn situation, lenovo can still be the only one able to stick to the PC position of big manufacturers, PC sales have maintained a good performance. At present, lenovo has also into smartphones peace board computer market.