IBM says business with Lenovo not to affect Mideast supplies

IBM will maintain supplies of its desktops and notebooks to the Middle East during the acquisition process with China's Lenovo, the daily Khaleej Times reported Thursday.

In the short term there will be continuity in IBM's regional operations on new PC stocks to distributors, Sameh Fareed, manager of sales operations for IBM Middle East, Egypt and Pakistan was quoted as saying.

"There will be no branding issues after the acquisition process is over," said Fareed, adding that the branding will remain IBM for the initial period.

China's personal computer giant Lenovo Group Limited Wednesday signed an agreement with IBM to take over the latter's personal computer business for 1.25 billion US dollars.

According to the agreement, Lenovo will acquire IBM's entire global desktop and laptop computer research and development and manufacturing business.

In return, Lenovo will pay IBM 650 million US dollars in cash and grant it 600 million US dollars worth of Lenovo stocks, which will make IBM an owner of around 18.5 percent of Lenovo's equity stake.

IBM is among the top three brands in the Middle East's notebook sales, and in the top five on desktops.