Boston, MA 06\/04\/2014 (wallstreetpr) \u2013 International Business Machines Corp. (NYSE:IBM)<\/b> and Lenovo are reported to have sought an extension of time in the U.S. review of their proposed deal. The move would give the Committee on Foreign Investment in the U.S. (CFIUS) more time to look into the U.S. national security issues in the deal, and that could also benefit the two companies that are plotting the deal.<\/p>\n
IBM is seeking to transfer the ownership of its low-end server business to Lenovo as the U.S. technology company tries to adjust its operations according to the market realities. However, the planned server deal comes at a time of heightened tension between the U.S. and China over spying and hacking claims.<\/p>\n
The proposal for an extension of the review time allows for thorough scrutiny of the deal to determine its potential impact on the national security<\/p>\n
Working hard on the deal<\/b><\/p>\n
Lenovo and IBM are working hard to get a deal done. Their move to restart the national security review not only show their strong commitment to the deal, but also reveal their understanding of the potential impact the tension between the U.S. and China can have on their businesses in the two countries.<\/p>\n
IBM will receive about $2.3 billion from Lenovo if the deal goes through. The companies expect the deal to close by the end of this year.<\/p>\n
Lenovo also recently agreed to purchase Google Inc (NASDAQ:GOOG)<\/b>\u2019s underperforming handset business Motorola Mobility. The acquisition is part of Lenovo\u2019s attempt at repairing the damage in its balance sheet caused by the poor PC sales.<\/p>\n
Eliminating IBM <\/b><\/p>\n
Media reports surfaced last week that China has asked domestic banks to remove International Business Machines Corp. (NYSE:IBM) servers from their systems as part of the country\u2019s review of its financial security. Elsewhere, it has also been reported that China is urging state-owned companies to cut ties with U.S. technology companies.<\/p>\n
There have been counter accusations between the U.S. and China over spying issues, and the ongoing security reviews are considered detrimental to the businesses of U.S. companies in China. However, International Business Machines Corp. (NYSE:IBM) denied claims that its business in China is under threat because of the cybersecurity concerns.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 06\/04\/2014 (wallstreetpr) \u2013 International Business Machines Corp. (NYSE:IBM) and Lenovo are reported to have sought an extension of time in the U.S. review […]<\/p>\n","protected":false},"author":2,"featured_media":18362,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[1053,1614,1797,712],"stock_ticker":[],"class_list":["post-24651","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-nyseibm","tag-google-inc-nasdaqgoog","tag-international-business-machines-corp-nyseibm","tag-nasdaqgoog","entry"],"acf":[],"yoast_head":"\n