Categories: BusinessFront Page

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.

Lenovo shares have dropped by as much as 15 percent as investors question its recent acquisitions

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.”

m82bzaJi-BY
Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

Recent Posts

Spain: At Least 158 Killed In The Country’s Worst Flooding Disaster

At least 158 people have died in Spain's worst flooding disaster in generations. On October…

2 days ago

Russia Fines Google $20,000,000,000,000,000,000,000,000,000,000,000, Surpassing Global GDP

Google has been fined two undecillion (a two followed by 36 zeroes) roubles by a…

2 days ago

Financing Your Home Remodel: 7 Tips for Success

Embarking on a home remodel is an exciting journey, promising enhanced comfort, increased property value,…

2 weeks ago

Donald Trump Serves Up McDonald’s Fries While Kamala Harris Celebrates 60th Birthday with Church Choir

The US presidential candidates continued to campaign across key swing states on October 20. Footage…

2 weeks ago

America PAC: Elon Musk Promises to Award $1M Each Day to Swing States Voters

Elon Musk has said he will give away $1 million a day to a registered…

2 weeks ago

Canada Expels 6 Indian Diplomats Amid Khalistan Row

India and Canada have decided to expel their top envoys along with other diplomats as…

3 weeks ago