LENOVO MIGHT MAKE A PLAY FOR LEXMARK

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LENOVO MIGHT MAKE A PLAY FOR LEXMARK

 user 2006-11-14 at 12:20:00 pm Views: 73
  • #17225

    Lenovo might make play for Lexmark
    Lenovo is gunning for a piece of the printer market and could lead a consortium to buy Lexmark, according to industry analysts..
    In
    a presentation for clients, analysts Larry Jamieson and Jiqiang Rong of
    Lyra Research in the US, said rumors are rampant in China and on Wall
    Street that a Lenovo-led group, backed by the Chinese government, might
    make a play for Lexmark as the PC maker seeks to build a major printer
    business within two to five years.”It’s rather difficult to get moving
    forward on building a printer business; if you have to build from the
    ground up,” Jamieson said in the presentation, which was
    webcast.”Lexmark does have inkjet and laser technology. They could use
    a cash infusion and an investment infusion.”Lexmark manufactures
    Lenovo-branded printers for Lenovo, but the business is only a sliver
    of the PC company’s sales.Lenovo and Lexmark spokespeople on Wednesday
    declined to comment on the analysts’ remarks, each saying they wouldn’t
    discuss rumour or speculation.Jamieson made his remarks while
    displaying a chart on potential Lenovo printer acquisition targets,
    titled “One Obvious Candidate: Lexmark. Rumors Already Flying in China
    and on Wall Street.He listed reasons why a Lenovo acquisition of
    Lexmark would make sense, including the following: Lexmark’s market
    capitalization has dropped 50 percent since 2004; Lenovo could deal a
    blow to rival Dell, which has a deal with Lexmark to build Dell-branded
    printers; and Lexmark and Lenovo share a corporate heritage with
    IBM.Lexmark is an IBM printing division spinoff, and Lenovo last year
    bought IBM’s PC business, he noted.”Lenovo-Lexmark rumors have been
    flying around for quite a while,” Jamieson said.In addition, Lenovo CEO
    William Amelio and Lexmark CEO Paul Curlander are both former IBM
    executives.