China's Lenovo buys IBM personal computer business for 1.25 bln dollars

[leftchick]

"Lenovo announces the acquistion of IBM personal systems at a price of 1.25 billion dollars," Lenovo chairman Liu Chuanzhi said at a press conference in Beijing, getting a roar of applause from hundreds of Chinese journalists.


"The business we have bought includes IBM's entire global desktop and laptop computer business," he said.


The deal comprises 650 million dollars in cash and 600 million in Lenovo shares which gives the US-based IBM a 18.9 percent stake in the Hong Kong-listed Lenovo.


Lenovo will fund the acquisition through internal cash and debt and will assume about 500 million dollars of net balance sheet liabilities from IBM, making the deal worth some 1.75 billion dollars in all.

http://story.news.yahoo.com/news?tmpl=story&cid=1504&ncid=1504&e=6&u=/afp/20041208/ts_afp/china_it_us_company_lenovo_ibm_041208074340

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