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Lenovo abandons bid for Brazilian PC maker

By Wang Xing (chinadaily.com.cn)
Updated: 2008-12-18 11:36

Chinese computer maker Lenovo Group has decided not to pursue its bid for Brazil's largest PC vendor Positivo Informatica at the present time, reported Wall Street Journal, citing an anonymous source.

The news, if accurate, means Lenovo has given up a deal that would have been the company's largest overseas acquisition since it bought IBM's PC arm in 2005.

It was first reported by Brazilian media that Lenovo was looking into a possible acquisition of Positivo Informatica, which accounts for about 21.5 percent of Brazil's PC market. Dell Inc was also reported to have taken an interest in the bidding.

Lenovo had confirmed in an earlier statement that it is in preliminary discussions with third parties regarding possible investments and acquisitions.

The Brazil media previously reported that Lenovo had offered to pay $833 million (2 billion reais) for the deal, compared with 1.25 billion it paid to acquire IBM's PC department.