p2pnet.news :- The sale of IBM’s PC business to Lenovo Group, China’s largest computer maker, wouldn’t give China access to US military applications, the US Committee on Foreign Investment has decided.

The proposed deal was formally investigated by the security panel at the demand of Republican lawmakers who were, “reportedly concerned that China could conduct industrial espionage at IBM’s Research Triangle Park facilities in Raleigh, N.C., where defense research is conducted, and gain access to technology that could have military applications,” says IBM.

The company says the decision by the committee, whose members include representatives from state, defense and homeland security, opens the way for the sale to close on schedule during the second quarter.

Under the proposed $1.25 billion transaction, Lenovo will pay IBM $650 million in cash and up to $650 million in common stock, representing an 18.9% stake in the Beijing-based company.

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See:-
IBM – IBM, Lenovo deal cleared by U.S. security panel, March 9, 2005
$650 million – Why would IBM sell to Lenovo?, p2pnet, December 7, 2004

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