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Not a good time for deals, says Lenovo

NOW is not a good time to hunt for mergers or acquisitions even though asset prices are relatively low, the top executive of Lenovo Group, the world's fourth-largest PC maker, said yesterday.

Lenovo executives have previously said the company was hunting for acquisitions in emerging markets, especially China, Brazil and India.

But Chief Executive Officer Yang Yuanqing said it could be difficult to reach agreements currently because target companies might be unwilling to sell at the current depressed prices, while Lenovo would not want to buy at high prices.

"Even if asset prices fall to a low level, it does not necessarily bring a deal to us," Yang said. "Now is not a good opportunity to do M&A."

On Thursday, the company unveiled 50 new consumer models in Beijing, underlining its efforts to shift business focus to the consumer segment.

PC demand in the Chinese market is seen rising in the quarter ending last month from the previous quarter, Yang said. "We have noticed the increasing intentions of spending by Chinese consumers, a result of the stimulus measures by the government," he said.

To meet demand, Lenovo is to step up the pace of launching new products and also diversify its range.

The company, whose operations were previously all in China, now relies on the Chinese mainland for 45 percent of global revenue after buying IBM's PC business in 2005.

Yang said growth in the Chinese PC market was likely to outpace the global average over the next few years.



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