Lenovo drops bid for PC maker

 

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By Reuters

Posted on 18 Dec 2008 at 08:41

Lenovo has dropped its interest in buying Brazilian PC maker Positivo.

"Lenovo and Positivo agree that given the current economic turmoil and uncertainties, it is not feasible to reach an agreement on a transaction at this time," says Lenovo spokesperson, Angela Lee.

Lenovo, along with its global rivals, are facing slowing demand as the world economy struggles with recession and companies cut back on tech spending.

Lenovo continues to look at ways to grow its business organically and through mergers and alliances, says Lee, who doesn't rule out an acquisition down the road.

"The companies are exploring a broad strategic alliance that would create long-term shareholder value for both companies," she claims.

Lenovo is sitting on a big cash pile, and has said it is open to acquisitions amid an expected consolidation in the PC industry, but has not named any potential targets.

Brazilian media have reported that both Lenovo and possibly Dell were interested in Positivo.