China's Lenovo Group is in talks with an unnamed major international IT company regarding a "very substantial acquisition", the company announced yesterday.
The announcement comes after Friday's report in The New York Times that IBM was negotiating the sale of its PC business to the company. Lenovo said the talks were at an advanced stage but that no definitive agreement or letter of intent had been signed.
A deal between Lenovo and IBM could be announced as early as today, according to a report in today's Wall Street Journal, which said that the two companies would create a joint venture to own IBM's PC business.
Lenovo is expected to pay up to $2bn (£1bn) to own a majority of the new company, with IBM holding a minority stake, according to the report.
Martyn Williams writes for IDG News Service