Join the WebProWorld Forum!

Security is a Factor in IBM Lenovo Deal

As reported yesterday, IBM's recent deal with Lenovo is under review by the Committee on Foreign Investments in the United States (CFIUS).

According to an IBM spokesman, "IBM has filed the required legal notice with the Committee on Foreign Investments."

The Committee which includes the U.S. Treasury Department is not allowed to comment on details of the review.

An Enterprise Security Today article points out that "If the IBM and Lenovo deal is prohibited, it would not be the first time the government has blocked sales to Chinese firms, citing national security.

One high-profile example occurred in 2003, when Global Crossing was not granted approval to sell its telecommunications network to a Hong Kong-based company."

"China is a still a Communist nation," said Laura DiDio an analyst from Yankee Group. "They're very closed, despite these deals, and they sell stuff to people we consider enemies. So there's a real fear here, and it's not unwarranted."

DiDio believes that the deal may not die but could alter details.

WebProNews | Breaking eBusiness News
Your source for investigative ebusiness reporting and breaking news.

Digg This! StumbleUpon This!
AddThis Social Bookmark Widget

News Tags: lenovo, IBM, Security
About the author:
WebProNews | Breaking eBusiness News Your source for investigative ebusiness reporting and breaking news.

Comments

Post new comment

The content of this field is kept private and will not be shown publicly.
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
20 + 0 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.
Subscribe to WebProNews


Send me relevant info