ibm-sells-35-stake-in-lenovo

IBM sells 3.5% stake in Lenovo

The placement is comfortably covered after a surge in the PC company's share price.
Following an almost 10% run-up in LenovoÆs share price over the past few days, sole bookrunner Citigroup executed a private placement on behalf of IBM on Monday afternoon and evening. The 300 million shares sold in the transaction amount to a 3.5% stake.

IBM raised HK$960 million $123 million through the deal.

Following the sale, IBM û which sold its personal computer division to Lenovo in April 2005 in return for cash and a 15% stake in Lenovo û faces a 90-day lockup.

The placement priced at the bottom of the range however bankers say that investors took into account the stockÆs strong performance since last Thursday.

The stock closed at HK$3.44 on...
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