...
:: Home :: | :: Mission Statement :: | :: Corporate Focus :: | :: Discussion Forum :: | :: About Us :: |
|---|---|---|---|---|
:: BenQ Corp :: | :: Chery Auto :: | :: Lenovo :: | :: Shanghai Auto :: | :: TCL :: |
| Panel | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ||||||||||||
This page contains current research on Lenovo. Information include timeline of firm history, in-depth articles about company events and changes, and analyses of Lenovo. Please click on the titles for the full article. We welcome more contributions - submit through Contact US section. |
Source: Business Week Online
Time: 7 February 2007
Title: "IBM Shrinks Its Lenovo Stake"
Author: Bruce Einhorn
Summary:
IBM's "dumping of its Lenovo equity stake" signifies a pulling-away by IBM from its direct-relationship with Lenovo that further undermines Lenovo's global efforts as it struggles both home and abroad, with increased competition.
IBM "dumping a sizable chunk of its Lenovo equity stake"
"sent Lenovo shares traded in Hong Kong into a free fall early on Feb. 6, down 7% to HK$3.20, before the coputer company requested a suspension of trading"
"We have always known that IBM is not in the business of investing in PC companies, and this comes as no surprise" - Lenovo spokesperson Angela Lee
Lenovo's global woes:
Lenovo facing competition from Taiwan's Acer for no. 3 computer-maker position
Stalling diversification efforts
Lenovo "counting on IBM relationship and access to Big Blue's sales-and-distribution network to boost revenue in North America and Western Europe"
Increase competition → forced to cut prices to maintain market share
Dell launch AMD platform in China → could hurt market shares
Original Text
Is IBM ready to cash out its chips in Lenovo, the world's third-biggest personal-computer maker?
That's a question many Lenovo investors must now be asking themselves following the news that Big Blue is dumping a sizable chunk of its Lenovo equity stake. The development sent Lenovo shares traded in Hong Kong into a free fall early on Feb. 6, down 7% to HK$3.20 40 cents, before the computer company requested a suspension of trading.
...
But that stake is now shrinking. Reports of the big IBM sale of Lenovo shares – - equivalent to 3.5% of the entire company – - caught investors by surprise. Lenovo's trading volume, which has averaged about 36 million shares in recent months, shot up to about 314 million shares on Feb. 6, according to data compiled by Bloomberg News.
...
She added, "What's important to remember is that this has little or no impact on our highly successful relationship with IBM. IBM has been – - and continues to be – - a major partner and customer of Lenovo."
...
This is just the latest blow to Lenovo's plans to become the first Chinese tech company to become a global player. The company, long the dominant player in the fast-growing Chinese market, leapfrogged to prominence in the rest of the world after the IBM deal. That purchase catapulted Lenovo to the No. 3 spot globally, behind only Dell (DELL) and Hewlett Packard (HPQ). It also prompted many observers to predict the deal would make Lenovo – - with its combination of high-end Western experience and a low-cost Chinese foundation – - a fearsome force in the global IT marketplace.
...
There is still time for Lenovo management – - led by CEO William J. Amelio, the former Dell executive who joined the Chinese company in late 2005, along with other Dell veterans – - to make things right. The know-how is there, said Bryan Ma, an analyst with International Data Corp. in Singapore. "They are getting hit with a few punches along the way," concedes Ma. "But we are looking at a company that should do well. These are the kind of people who, when they were at Dell, were able to run that like an operational machine."
...
LOAD-DATE: February 7, 2007
...
| borderColor | #ccc |
|---|---|
| bgColor | #FFFFCE |
| titleBGColor | #ccccff |
| borderWidth | 2 |
| title | Welcome to the Chinese Business Forum! |
| borderStyle | solid |
...