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January 27, 2005

Lenovo Shareholders agree on IBM PC Purchase


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Shareholders of Asia's biggest computer maker Lenovo Group Ltd. have approved the purchase of IBM's personal-computer division for US$ 1.75 billion- ($1.25 billion in cash and stock for its majority stake in the merged desktop and laptop business, and US$500 million worth of debt and liabilities). The purchase will make Lenovo the world's third-largest PC maker. This news follows an a request by American lawmakers to investigate the national security implications of Lenovo's deal with International Business Machines Corp based on the Chinese government large stake in Lenovo. The Lawmakers contend that the companies' agreement might result in the Chinese government being involved in computer contracts with the US government. The lawmakers wanted the review to be done by the US Committee on Foreign Investment, which considers security risks of foreign companies buying or investing in American businesses.







 

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