Lenovo has walked away from IBM takeover discussions, as both companies clash over the valuation of IBM's X86 server business.
Citing unidentified sources, Fortune magazine says the multibillion-dollar deal is now off the table, with the Chinese PC maker allegedly dismissing IBM's US$6 billion proposal.
The news follows strong reports last month that Lenovo was considering an acquisition of the X86 server business, with the world’s second-largest PC manufacturer even releasing a statement to the Hong Kong stock exchange dismissing the claims.
“As at the date of this announcement, no material terms concerning the potential acquisition have been agreed," a Lenovo read.
Yet the denial wasn't enough to prevent rumours escalating, with China Daily newspaper reported the companies were in 'preliminary negotiations' over a possible deal.
Reuters says IBM declined to comment on the news, while Lenovo admitted it was in early talks about a potential acquisition but refused to name the firm.
Despite the set-back however, negotiations could still resume, following in the footsteps of Lenovo's purchase of IBM's PC division in late 2004.
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