Lenovo Group Ltd, China's biggest maker of personal computers, said Thursday it will seek to enter a "strategic alliance" with Positivo Informatica SA, after ending talks to buy the Brazilian company.
Lenovo will continue to evaluate other acquisition targets to boost growth, spokeswoman Angela Lee said from Hong Kong, according to Bloomberg News. Turmoil in the world economy meant an acquisition of Positivo was "not feasible at this time," she said.
Positivo, Brazil's biggest computer maker, yesterday said it rejected an offer of 18 reais (US7.61) per share from Lenovo because the bid wasn't "attractive in the long term." The Brazil-based company's shares fell by a record 26 percent to 8.14 reais in Sao Paulo trading on Wednesday after a report said Lenovo dropped its takeover bid.
Lenovo last week said it was in "preliminary" talks on possible investments and acquisitions. The company, which moved its headquarters to the US after buying International Business Machines Corp's PC unit in 2005, is seeking to bolster earnings after reporting a 78-percent drop in second-quarter profit on weakening demand from corporate clients. Its shares rose 2.7 percent to HK$2.28 (29 US cents) in Hong Kong trading yesterday.
(Shanghai Daily December 19, 2008)