Lenovo is considering an acquisition of IBM's X86 server business, in a deal rumoured to cost as much as US$6 billion.
As media interest in the story cranks up a level, the world's second-largest PC maker released a statement last week, playing down the claims.
"As at the date of this announcement, no material terms concerning the potential acquisition have been agreed," the company told the Hong Kong stock exchange.
But the denial wasn't enough to stop newspaper China Daily, who reported the company was in "preliminary negotiations" which IBM regarding a possible deal.
With Lenovo now leading the way in a shrinking PC industry, a potential acquisition would see the company improve its enterprise hardware sector, with IBM ditching the PC market long ago.
CRN news reports that IBM solutions providers are happy with a possible sale, suggesting a deal could be struck with minimal fuss.
Keeping in line with company protocol however, IBM chief financial officer Mark Loughbridge refused to be drawn on the speculation, telling CRN:
"There are parts of our business that are in transition or have been underperforming, like elements of our Power, [System] x and storage product lines that showed disappointing performance in the first quarter," he said.
"Here we're going to take substantial actions," he said, without offering details."
Despite downplaying the rumours, Lenovo shares rose 9.3% in Hong Kong at the close of play last Friday.
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