IBM and Lenovo have reportedly called off deal talks, under which the Chinese firm might have acquired the US company’s server business.
Several reports suggest that negotiations between the two companies failed after they couldn’t agree on a price for the deal.
Citing an unnamed person the Wall Street Journal reported that there was no agreement on valuation.
"In terms of sitting around the table and working through the nuts and bolts of the transaction, that’s not happening right now," the source said.
Bloomberg reported that Lenovo wanted to pay toward the low end of the $2.5bn-to-$4.5bn range while IBM sought a substantially higher price for the business unit.
In 2005, Lenovo acquired IBM’s personal computer (PC) business for $1.75bn, making it the third-largest PC manufacturer at that time.
Lenovo is increasing its share in the PC market with 14.7% market share in the first quarter of 2013.
A report by Gartner found that global PC shipments have declined 11.2% to 79.2 million units in Q1 2013, compared to the 89.1 million units shipped during corresponding period in 2012.
Last month, Gartner reported that worldwide PC, tablets and mobile phone shipments will reach 2.4 billion units in 2013, a 9% increase from 2012.
