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.

Learn about the Asian markets and CFD trading at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.