Tuesday, March 08, 2005

Three risks for Lenovo

From People's Daily: Three risks in acquiring IBM PC sector: Lenovo Chairman

"Deputy to the National People's Congress of China and the Chairman of the Lenovo Group Liu Chuanzhi said he is confident to turn the loss-making IBM PC sector to profits."

According to Liu there are three risks for the prospect of profit making with the IBM deal:

1.) "The old customers of IBM will probably not buy Lenovo's products."
2.) "Employees may leave the companies due to change of shareholder."
3.) "Friction may occur between the two sides."

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