IBM Sells $83.6 mln Stake in China`s Lenovo

By Reuters -  |  Posted 2008-04-21 Print this article Print

IBM continues to sell off Lenovo shares. 

HONG KONG, April 21 (Reuters) - U.S. computer giant IBM (IBM.N: Quote, Profile, Research) shed more of its stake in top Chinese PC maker Lenovo Group Ltd (0992.HK: Quote, Profile, Research) on Monday, offloading $83.6 million worth of stock at a 6 percent discount to its last trading price, a source familiar with the deal said.

International Business Machines Corp (IBM) acquired its stake in Lenovo at HK$2.675 a share in 2005, when the Chinese firm bought IBM's ailing PC arm for $1.25 billion, and has been selling it off in chunks as lockup periods have lapsed.

On Monday, IBM sold 116.19 million Lenovo shares at HK$5.61 each, the bottom of their indicated range, in a deal handled by Citigroup (C.N: Quote, Profile, Research).

The stake represents 1.3 percent of Lenovo, the world's No. 4 personal computer maker, leaving IBM with 6.5 percent of the company, according to a document sent to investors.

Lenovo shares closed at HK$5.97 on Monday, down 0.5 percent, lagging a 2.17 percent gain in Hong Kong's benchmark Hang Seng Index .HSI.

In February, IBM sold $80 million worth of Lenovo shares at HK$5.41 each. (US$1=HK$7.8) (Reporting by Kennix Chim and Tony Munroe; Editing by Joseph Chaney/Elizabeth Fullerton)


Submit a Comment

Loading Comments...
eWeek eWeek

Have the latest technology news and resources emailed to you everyday.

By submitting your information, you agree that baselinemag.com may send you Baselinemag offers via email, phone and text message, as well as email offers about other products and services that Baselinemag believes may be of interest to you. Baselinemag will process your information in accordance with the Quinstreet Privacy Policy.

Click for a full list of Newsletterssubmit