make that 18.9% retained ownership ... not a bad deal.
Lenovo buys IBM PC unit for $1.75 bln
By August Cole, CBS.MarketWatch.com
Last Update: 9:12 PM ET Dec. 7, 2004
SAN FRANCISCO (CBS.MW) -- Lenovo Group Ltd. will buy IBM's personal computing business in a $1.75 billion deal, creating what the companies said Tuesday night will be the No. 3 PC maker worldwide.
Lenovo buy IBM PC unit in $1.75B deal Tech stocks close sharply down after recent gains Lenovo confirms it's in acquisition talks More news for IBM
The deal involves IBM (IBM: news, chart, profile) taking a 18.9 percent stake in Lenovo (LNVGY: news, chart, profile) (HK:992: news, chart, profile) and is expected to close in the second quarter of 2005.
The total transaction is valued at $1.75 billion, with IBM receiving receive $650 million in cash and $600 million in Lenovo stock, according to the companies. Lenovo is expected to assume $500 million in balance sheet liabilities, as well.
IBM said the deal will have a "minimal financial impact" in the fourth quarter. About 10,000 of IBM's workers will become Lenovo employees as part of the deal.
those 10,000 IBM employees who now work for the chinese. 9000 of them won't have jobs in the US by June 2005.
"About 10,000 of IBM's workers will become Lenovo employees as part of the deal."
This means that China is now instantly 'outsourcing' jobs to America!
These numbers will be added into next years statistics thus demonstrating that all is well with the world.