Seeking Alpha

Lenovo, IBM look for deal extension

  • Lenovo (LNVGF) and IBM (IBM) are looking to extend their deal deadline, as the Committee on Foreign Investment in the United States (CFIUS) continues the review of Lenovo's planned purchase of IBM’s low-end server unit for $2.3B.
  • The CFIUS assesses acquisitions for their national-security implications, and the deal between China-based Lenovo and IBM comes at a time of tensions between the U.S. and China over spying and hacking claims.
  • IBM CEO Ginni Rometty has stressed the importance of the deal, and how it could stage a comeback for IBM, as users increasingly change to cloud-computing, reducing the need for servers and mainframes.
  • If approved, Lenovo has stated that the companies can seal the deal by the end of the year.
Comments (1)
  • delano59
    , contributor
    Comments (96) | Send Message
     
    IBM could have Livorno (china) just make the product like Schwinn bikes does
    and make a profit, and save 7,500 IBM jobs in the entire US o A !
    Who did not tell the IBM women CEO about people needing Jobs, not to mention the collateral damage to hike values , massive income federal and state tax lose, and the unemployment cost for federal and state funds. All this damage for IBM to "have there head in a cloud."
    I've got new CEO my thumb drive is a form of a cloud. You can not do what you are planning and command any respect. Think.
    Make chips better, build smarter computers ,buy apple!
    10 Jun 2014, 10:29 AM Reply Like
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