Once again Lenovo looks upon IBM's server business

Chinese Lenovo Group Ltd negotiates to purchase the low grade server business of International Business Machines Corp (IBM), according to an unnamed source. Thus both companies revive negotiations that collapsed in the middle of last year, writes MarketWatch. Last spring, the U.S. company was in advanced talks to sell all or part of the so-called x86 server business to Chinese manufacturer Lenovo. The talks failed because of a disagreement over the purchase price between the companies.

 In a statement from this Tuesday, Lenovo said it is currently in negotiations for a potential acquisition. News increased the capitalization of the company on the Shanghai Stock Exchange by over 3% . The eventual deal won't be the first ever between the two companies. In 2005, the Chinese company bought the PC business of IBM. Lenovo spokesman declined to comment on the recent speculation that the potential acquisition is associated with a unit of IBM. Earlier this week, people familiar with the matter said that IBM is exploring the possibility of selling its server business among potential buyers is Dell Inc.