IBM sells server business negotiations stranded on valuation differences

http://www.aliyun.com/zixun/aggregation/17197.html "> Beijing time May 2 news, according to foreign media reports, people familiar with the situation said that Lenovo and IBM on the" Lenovo will have failed to negotiate a billions of dollar 10246.html "> acquisition of IBM part of the server business" deal. Concerns about valuation of the deal are said to be the main reason for the failure of the talks.

People close to the situation said that although negotiations could resume, they were now closed because of valuation concerns.

Neither Lenovo nor IBM's spokesmen commented on the rumours.

Last month, talks about Lenovo and IBM began appearing in major media, and the news was confirmed by the Fortune. Bloomberg News said at the time that IBM might sell the so-called X86 server business to Lenovo, expecting a possible deal price between 2.5 billion and 4.5 billion dollars. Other media outlets say IBM wants the deal to be priced at $6 billion. There is also news that the IBM marked the transaction price of 5 billion U.S. dollars, accounting for about One-third of the total IBM server revenue, the price, Lenovo is unwilling to accept.

Lenovo, the world's second-largest computer maker (after HP), has been hoping to support the development of its own server business. x86 servers, which are still low-end servers, can help Lenovo compete with HP and Dell.

Lenovo's acquisition of IBM's PC business in 2005 has been growing faster than its rivals in recent years. According to the IDC report, especially in the last quarter, with PC sales showing the biggest decline in the industry's history, Lenovo can still be the only big manufacturer to stick to PC positions, and PC sales are doing well. Lenovo has also moved to the smartphone and tablet market.