, the world’s No. 4 PC manufacturer, has broken off talks to acquire Brazil’s largest PC-maker.

In a statement issued in China, where Lenovo bases most of its operations, the company said it would now pursue a strategic alliance with .

Citing the current global economic conditions, a Lenovo spokesperson told the Bloomberg business news service that an acquisition was “not feasible at this time.”

Lenovo issued a similar statement to Chinese media.

The news confirmed a Wall Street Journal report citing an unnamed source that had said Lenovo was no longer interested in making a deal for Positivo.

Rumors have been circulating intensely in recent weeks that Lenovo was in talks to buy Positivo as part of its strategy to increase growth in emerging markets. Positivio owns more than 20 percent of the market share in Brazil.

Dell, the world’s No. 2 PC-maker, also was reportedly interested in acquiring Positivo.

Bloomberg reported that Positivo rejected a Lenovo bid of some $7.65 (18 Brazilian reals) per share, saying the offer “wasn’t attractive in the long term.”

Positivo shares traded at 8 reals, or $3.40, on Wednesday, a decline of more than 26 percent.

Based on exchange rates as of Thursday, the reported bid was worth some $700 million.

Recent media reports said Lenovo had offered more than $800 million.