Sources that claim to be familiar with the negotiations are reporting that Lenovo has resumed talks to purchase IBM’s low-end x86 server unit. The move by Lenovo is seen as an attempt to branch out from the sagging computer market, which Lenovo has been weathering better than most.
The two firms were in negotiations last year, but failed to come to an agreement on price. Reports last year during negotiations tipped that IBM wanted $4 billion to $6 billion for the server division. Lenovo was reportedly holding firm with a $2.5 billion offer.
Analysts are now expecting the sale to be in the $2.5 billion to $3 billion range.
Neither IBM nor Lenovo have offered any official comments on the deal.
Lenovo could finance the deal with a combination of cash, debt, and converts according to analysts.
