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Lenovo in talks to buy IBM server business - report

2014-01-21 08:33:00| Telecompaper Headlines

(Telecompaper) Lenovo announced that it's in preliminary negotiations on a potential acquisition. While the company did not provide further details, the statement follows reports Lenovo's in talks to acquire IBM's server business. The two companies held talks almost a year ago on a similar deal, but could not reach agreement on price, the Wall Street Journal reported. IBM is looking to exit the low-margin server business in order to concentrate more on software and services. For Lenovo, the takeover would provide a substantial boost to its minor position in the server market and provide a new growth area to offset the weakness in the PC market.

Tags: business report buy server

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