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SCMP Reporter

Lenovo Group and Positivo Informatica, Brazil's leading personal computer vendor, have ended talks over the mainland company's proposed buyout deal because of  economic uncertainties and instead plan to pursue 'a broad strategic alliance'.
This is the second time in two years  that Lenovo, the world's fourth-largest personal computer supplier, has failed  to secure a strategic corporate acquisition, after last year's fight  over European computer supplier Packard Bell.
'Lenovo and Positivo agreed that, given economic turmoil and uncertainties, it is not feasible to reach agreement on a transaction at this time,'  Lenovo spokeswoman Angela Lee said.
In a regulatory filing, Sao Paolo-listed Positivo said it had turned down an 18 reais (HK$59.10) per share offer from Lenovo.
United States-based Dell, the world's No2 personal computer supplier, is the other reported suitor for  Positivo.
Ms Lee said Lenovo and Positivo  see 'a significant value in collaboration and are exploring a broad strategic alliance that creates long-term shareholder value for both companies'.
Details on the form of collaboration and when it would start  were not given. Ms Lee also declined to comment on other potential acquisition targets for Lenovo, noting the company 'continuously evaluates opportunities to drive growth'.
A Daiwa Institute of Research report in May said  Toshiba and Fujitsu Siemens were  possible targets.
Bryan Ma, the director of personal systems research for IDC Asia-Pacific, said Lenovo can find other potential  partners, or acquisition targets, in emerging markets such as Brazil, Russia and India. 'The  players there could complement Lenovo's efforts to expand in these markets,' Mr Ma said.
In 2005, Lenovo  acquired the personal computer division of International Business Machines Corp - raising  the mainland firm's global profile and becoming the world's No3 computer vendor.
Taiwanese rival Acer unseated Lenovo in the first quarter of last year to become the world's third-largest computer supplier. Acer, through US subsidiary Gateway, beat  Lenovo in buying Packard Bell.



Timing not right as Lenovo and Positivo call off merger talks