IBM (IBM -0.8%) is in "active negotiations" to sell its x86 server business, and Lenovo...
Apr 18 2013, 13:53 ET
IBM (IBM -0.8%) is in "active negotiations" to sell its x86 server business, and Lenovo (LNVGY.PK) is the frontrunner to buy it, "multiple sources" tell CRN. An industry exec claims IBM wants $5B-$6B, and likes the idea of selling to PC division buyer Lenovo, since it doesn't compete much with IBM elsewhere. A purchase of that size wouldn't be easy for Lenovo, give its market cap is only $8.6B. IBM, which reports after the close, saw its x86 sales fall 2% Y/Y in Q4, as white-label sales to Internet firms account for a growing share of industry revenue. Also: trade union reps claim IBM is thinking of cutting 1.2K-1.4K jobs in France over the next 2 years.