Lenovo explores investments, acquisitions
Coming off a weak quarterly performance, PC maker confirms that it is in "preliminary" discussions regarding an investment or acquisition.
Updated at 7:26 a.m. PST with Lenovo statement.
Lenovo Group is in preliminary talks about possible investments or acquisitions, the PC maker confirmed a day after its stock shot up 27 percent on the Hong Kong exchange.
The company issued a statement after reports surfaced it was in acquisition talks. The PC maker, however, said that it was neither in negotiations nor has signed any agreements, but that it was in preliminary discussions with other parties about a possible investment or purchase.
According to its statement:
The directors of Lenovo Group Limited have noted recent comments in certain newspaper articles regarding possible acquisitions by the company and seek to clarify the company's position in this connection.
The directors wish to emphasis that the company does look at different business investment opportunities from time to time. The directors confirm that the company has certain preliminary discussions with independent third parties regarding potential investments opportunities and acquisitions. The directors wish to state that no negotiation has been carried out in respect of any of the possible acquisitions at this stage, and no transaction term or agreement relating to any of the possible acquisitions has been agreed upon or entered into by the company...
The possible acquisitions by the company may or may not proceed.
Last week, Fujitsu's chief financial officer spoke to the Dow Jones Newswires and noted that Lenovo had approached his company about a potential acquisition of its retail PC business run by Fujitsu Siemens Computers, which is predominately in Europe, according to a report in The Wall Street Journal.
When the company reported its fiscal second-quarter figures in early November, it showed a 7.4 increase in global PC shipments--which lagged behind the industry--as well as flat consolidated U.S. revenue from continuing operations of $4.3 billion.