IBM reducing their stake in Chinese company Lenovo

US computer giant IBM Corp has said that they are planning to sell a substantial part of its stake in China’s Lenovo.

Lenovo is currently the world’s third largest personal computer maker and they acquired the IBM’s personal computer division.

IBM would be raising up to 990 million Hong Kong dollars through this deal. Market sources say that this deal to be arranged by the Citigroup, accounts for 3.5 percent of Lenovo Group’s total issued share capital.

With this IBM’s share in Lenovo would be reduced to 11.5 percent from 15 percent currently. Lenovo has now issued a request for suspension of trade in it shares as this deal is likely to affect their stock price massively during the upcoming weeks.

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