The economic climate in the US is deteriorating so rapdily that concern is beginning to surface over whether IBM’s deal to sell its typewriters, keyboards and low-end printers business to buy-out specialist Clayton & Dubilier Inc will be able to go ahead on the terms envisaged, if at all. In a first retrenchment, IBM has told employees at the Lexington, Ken tucky plant that the 4224, 4243, 3812 and 3816 higher-end laser printers do not fit in with the other printers that were envis aged to go with the sale, so that it will want about 50 people in a development oper ation at Lexington to transfer to another IBM site; it is envisaged that manufacture of the printers will transfer to Charlotte, North Carolina. But according to the Wall Street Journal, Clayton & Dubilier is nerv ous about taking on too much debt in the present climate, and it hears that it has had trouble lining up the bank finance it needs; talks with IBM are proceeding slow ly, but there are doubts that the $2,300m valuation put on the unit will be realised.
