China's Lenovo to buy IBM PC biz.New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- China's Lenovo Group Lenovo Group Limited, (HKSE: 0992 ) is today the fourth largest personal computer manufacturer in the world, and the largest in the Asia-Pacific region as of 2006. "Lenovo" is a portmanteau of "Le-" (from Legend) and "novo", pseudo-Latin for "new. (lenovogrp.com) will buy IBM's PC business for $ 1.75 billion in cash and stock, plus the assumption of debt. With the acquisition, Lenovo would become the third-largest PC company in the world, with sales of $12 billion, said Lenovo chairman Liu Chuanzhihe. Levono will acquire an 81.1% stake, with IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) holding 18.9%. The IBM division posted a first-half loss of $139 million on sales of $5.2 billion. Since 2001, the unit has lost nearly $1 billion. More than half of its products are manufactured through an unspecified joint venture--likely Great Wall Technology. IBM is currently the third largest maker of PCs, behind Dell (16.4%) and HP (13.9%). The merged company will have an 8% share of the global PC market. Stephen M. Ward, Jr., currently IBM senior vice president and general manager of IBM's Personal Systems Group, will serve as the chief executive of Lenovo when the deal closes. Yuanqing Yang, currently vice chairman, president and chief executive of Lenovo, will become chairman of Lenovo. Lenovo, China's biggest computer maker, claiming a 27% share, is traded publicly on the Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. exchange. Deutsche Bank Deutsche Bank AG (IPA: /'dɔɪ.tʃə/[1]) (ISIN: DE0005140008, NYSE: DB) (English: German Bank (db.com) analyst Chris Whitmore said Sanmina-SCI (sanminasci.com) generates about 20% of its revenue from building PCBs for IBM, and could lose up to $50 million in annual operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. if Lenovo were to end that supply deal. Edited by Mike Buetow |
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