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Lenovo-IBM deal in cloud
 
 
2005-03-02 09:02 CRIENGLISH.com
 
 

BEIJING, Mar. 2 -- The US government has rejected IBM's proposed concessions in its deal with China's Lenovo Group in the interests of national security issue.

The Beijing Morning Post report that last week IBM offered US government officials three concessions to help settle objections to sale of its personal computer unit to China's top computer maker.

They include preventing Beijing-based Lenovo from knowing the names of IBM's US government customers, sealing off buildings in a shared office park and moving thousands of employees to other locations.

Analysts say the decision could put Lenovo at a disadvantage against competitors such as Dell and Hewlett-Packard.

The 1.25-billion-dollar deal between the two companies is being probed by the Committee on Foreign Investments in the United States, an interagency panel that may review mergers or acquisitions that affect US national security.

Source: CRIENGLISH.com