IBM deal sees Lenovo stocks rise

<p>Lenovo stocks are up following reports of a deal with IBM.</p>

The share price of Lenovo has risen today (January 21st) on the back of reports the company is set to strike a major deal with IBM.

Lenovo is already the largest PC manufacturer in the world and rumours are circulating that it is now in talks to buy IBM's low-end server business.

But in a statement to the Hong Kong Stock Exchange, Lenovo added that "no material terms" had been agreed upon. It added that it had "not entered into any definitive agreement in relation to the potential acquisition".

"The diversification is definitely helping them sustain their growth at a time when PC sales have been slowing," Avinash Kalyana Sundaram, an analyst with research firm IDC told the BBC.

He added that a deal with IBM would help Lenovo to "push towards their aim of expanding their product portfolio".

Shares in Lenovo rose by 3.5 per cent on the Hong Kong Stock Exchange before falling away towards the end of the session and ending up 2.75 per cent up for the day.

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