US to hand IBM sale decision to Bush?
- Added:
- Jan 31, 2005
IBM announced it was to sell its PC business to Chinese group Lenovo for $1.25 billion in December.
The extension puts a potential stumbling block in the company's efforts to divest itself of its PC business. The move would see IBM retreating from a business it helped create, and has been widely lambasted in the US, but it would help improve the company's profitability.
The 45-day extension would be significant to the possibility of the sale going through, as it would place the final decision in the hands of President George W Bush, once the 45-day review is completed. A decision on the extension is expected today.
The chairmen of the Armed Services, Small Business and International Relations Committees have all expressed concerns over aspects of the sale, including the transfer of US technology and corporate assets to the Chinese government.
Some business analysts, however, have said that concerns over national security are being unnecessarily overstated as personal computing technology is widely available and IBM has routes to protect its other assets.