Lenovo Confident About Deal With IBM

    January 27, 2005

While Lenovo’s deal with IBM is being reviewed by U.S. officials over possible security issues, Lenovo is confident that the deal will still go through.

According to Lenovo CEO, Yang Yuanqing, the company hasn’t received any notice that the deal won’t be able to proceed. “The acquisition is proceeding as normal,” he said. “I am confident we will complete the deal as expected.”

Shareholders approved the deal at a meeting and Yang said that he didn’t see the deal as a threat.

“I don’t think [the transaction] is a threat to US’s national security,” said Yang. “Lenovo will do its best to cooperate with the investigations.”

He also defended Lenovo’s decision to buy IBM’s PC business after the company’s shares fell 21.5 per cent once the deal first came to light. The shares rose 7.4 per cent on Monday when security concerns first surfaced and finished unchanged at HK$2.1 on Thursday.”

“We are not just doing it because we want to become more international. We believe this deal will bring value to our shareholders,” said Mr. Yang.

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