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IBM sells $77m Lenovo shares at low end

(Agencies)
Updated: 2008-07-22 10:45

US computer giant International Business Machines Corp (IBM) sold $77.3 million worth of shares in top Chinese PC maker Lenovo Group Ltd at the bottom of a range, a source said.

IBM sold 116.19 million shares, or a roughly 1.3 percent stake in Lenovo, at HK$5.19 each, the bottom of a range of HK$5.19 to HK$5.36 per share, a source close to the deal said.

The deal was handled by Citigroup.

After the share sale, IBM's holdings in Lenovo would drop to 4.7 percent, which falls below public disclosure requirements, from 5.96 percent, according to a document sent to investors on Monday.

IBM acquired its stake in Lenovo at HK$2.675 a share in 2005, when the Chinese firm bought IBM's ailing PC arm for $1.25 billion, and has been selling it off in chunks as lock-up periods have lapsed.

In April, IBM sold $83.6 million worth of Lenovo shares at HK$5.61 each.

Lenovo's shares closed up 2.39 percent at HK$5.58 on Monday, lagging a 3 percent gain in Hong Kong's benchmark Hang Seng Index.