Lenovo shares drop more than 15% over recent acquisitions
Lenovo shares have dropped by as much as 15% as investors question its recent acquisitions.
Last month, Lenovo, the world’s biggest PC maker, struck two major deals totaling about $5.2 billion.
It bought IBM’s low-end business server for $2.3 billion, and a week later purchased US mobile phone company Motorola Mobility from Google for $2.91 billion.
Google had paid $12.5 billion for the Motorola handset business less than two years ago.
Investors had started selling Lenovo shares last week on news of the Motorola deal, due to questions surrounding Motorola’s profitability.
The firm’s shares fell 8% in Hong Kong on Thursday ahead of the market’s closure for the new year holiday. When the market reopened on Tuesday they dropped more than 15% at one point, before recovering slightly to stand at 8.62 Hong Kong dollars.
Questions have been raised as to how Lenovo will integrate the acquisitions into its overall corporate strategy.
The Chinese company turned around IBM’s ThinkPad brand, and that was seen as key to Lenovo overtaking Hewlett-Packard as the world’s top PC maker in 2012.
In addition to Lenovo’s recent deals, there has been a report that the PC maker is in talks with Japan’s Sony to acquire its Vaio laptop business.
In a statement, Sony said: “The press report on a possible PC business alliance between Sony and Lenovo is inaccurate.”
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