It has taken a long time, but Lenovo (NASDAQOTH: LNVGY ) and IBM (NYSE: IBM )
may be about to finally strike a bargain for IBM's x86 server
business. Lenovo has openly acknowledged its interest in this business,
but the companies have been at odds on deal terms. With ongoing share
loss in the server business and a desire to reallocate capital to
higher-returning businesses like software and services, IBM would do
well to close this deal.
The good news for Lenovo is that it can do well with or without IBM's
server business. The company has built the No. 1 PC business in the
world and has already grown its tablet and smartphone business to be No.
4 in terms of market share, without aggressively targeting the U.S.
Lenovo looks meaningfully undervalued, and sealing a deal with IBM would
only help matters.
Continue here:
http://www.fool.com/investing/general/2014/01/22/are-lenovo-and-ibm-finally-close-to-another-deal.aspx
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