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Lenovo denies IBM server biz buyout

Posted: 29 Jan 2008 ?? ?Print Version ?Bookmark and Share

Keywords:IBM server business? buyout rumor? China market?

Lenovo Group clarified Jan. 25 that it has not acquired IBM Corp.'s sever business, and that the latter has no plans of quitting the market, according to a report from

The China PC manufacturer, however, earlier announced a licensing agreement with IBM to make a series of Lenovo-branded tower servers and rack servers based on IBM's x86 server technology and sell them in markets outside mainland China. Entering a market dominated by IBM, Hewlett-Packard and Dell, Lenovo is reportedly aiming at small and medium business enterprises, a market it has been trying to penetrate for two years, said a Trading Markets report.

Rumors circulated that Lenovo may acquire IBM's server business after it has successfully absorbed the latter's PC business. However, since IBM's server business has been profitablegenerating over $10 billion in annual sales revenueLenovo would need a large amount to make the deal. Several market analysts dismissed the news as mere gossip.

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