Lenovo Eyes Packard Bell for Acquisition

Chinese computer giant Lenovo Group, which acquired IBM's PC division in 2005, is now planning for further expansion, announcing today that it is in exclusive exclusive discussions about a potential acquisition of Packard Bell. Lenovo said it has entered into a memorandum of understanding (MOU) with an independent third party to explore the possibilities of acquiring the European PC company, which was bought out last year by Hong Kong entrepreneur John Hui.

Lenovo is currently continuing negotiation with the works council and said it is undertaking the necessary enquiries with all concerned parties and government bodies in preparation for entering into definitive agreements for acquisition. Should all the necessary checks and balances be met, the deal will be conducted under the Hong Kong Stock Exchange listing rules. However, Lenovo is still warning shareholders and potential investors that the proposed acquisition may or may not materialise. Further announcements will be made as and when appropriate to comply with requisite listing rules and procedures.

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