In a bid to boost its presence in the European marketplace, Chinese electronics giant Lenovo, which two years ago bought IBM’s PC division, said it has signed a memorandum of understanding to acquire Packard Bell.
While Lenovo itself has not disclosed any sum for the transaction, various reports suggest the deal could be worth around US$800m (€581m).
Packard Bell, which controls 2pc of the world’s PC market, was established in the US in 1926 as a radio manufacturer. The company has all but vanished from the US PC market but continues to be a popular brand in Europe, holding number three position in consumer sales.
Packard Bell is estimated to have made revenues of between US$1.5bn and US$2bn in 2006.
Lenovo today confirmed it is in discussions with an independent third party in relation to a proposed acquisition of Packard Bell.
The transaction, if it materialises, may be disclosed under Hong Kong Stock Exchange rules.
By John Kennedy