As Lenovo enters the second day of it’s “road show” to see if it can raise cash by selling bonds, the world’s No. 2 PC maker added fuel to the fire that it’s about to make some sort of a big deal.
All the deal talk is overshadowing the fact Lenovo is hosting an event on Wednesday morning to formally dedicate its new PC manufacturing line and the addition of more than 100 jobs in the Triad.
“The board would like to inform the shareholders of the company and potential investors that the company is in preliminary negotiations with a party in connection with a potential joint venture transaction,” reads a notice that Lenovo provided to the Hong Kong stock exchange where its shares are traded.
Bit by bit, Lenovo is dropping more hints a deal is near.
Back on April 18, Lenovo, which operates its executive headquarters in Morrisville, issued a similar statement:
“As at the date of this announcement, no material terms concerning the potential acquisition have been agreed,” the company said in the statement. according to Reuters.
Speculation has raged for weeks that Lenovo was negotiating to buy all or part of IBM’s (NYSE: IBM) struggling server business.
There also has been talk recently that Lenovo might strike an joint venture with NEC in Japan for smartphones. The two companies are already partners in PC manufacturing.
Media reports focused a great deal on a possible NEC deal, but that speculation runs counter to April 29 news from Reuters and Bloomberg that Japan-based Marubeni was acquiring NEC’s business for some $811 million.
All the talk also included renewed speculation that Lenovo is interested in some sort of deal with smartphone maker BlackBerry.
Lenovo denied a BlackBerry deal story after repeated versions of a possible transaction appeared worldwide.
The fact remains that Lenovo is a very aggressive shopper as it seeks to expand further beyond PC sales as part of Chairman and CEO Yang Yuanqing’s “PC Plus strategy.”
Lenovo has pursued an aggressive acquisition strategy over the past two years, buying a major PC company in Germany, another firm in Brazil and a software company while also striking the joint PC manufacturing venture with NEC.
In Hong Kong on Tuesday, Reuters reported that Lenovo CFO Wong Wai Ming and other executives “met with investors in Singapore to drum up interest in a bond issue that investors say could raise $500 million or more and help to fund a renewed acquisition drive.” More meetings are scheduled Wednesday in London.
[LENOVO ARCHIVE: Check out eight years of Lenovo stories as reported in WRALTechWire.]