Just caught a blurb on CNBC.... I thought it said "Lenovo is being delisted in Hong Kong. No reason given". Looks OK to me.. Not below $1 or anything. Surprised that there isn't a comment on this board.... jegan
HONG KONG (Reuters) - Shares of Lenovo (HKSE:0992.HK - News) were suspended on Wednesday, as market talk swirled that the world's No. 4 PC seller was set to announce a major restructuring amid flagging sales in the global downturn.
The company said in a statement its shares were suspended pending the release of price-sensitive information, but did not give further details. A company spokeswoman in Hong Kong declined to comment.
Market talk has swirled for days that Lenovo may soon announce a major restructuring that could reach all the way up to its top management.
Lenovo saw its share of the global PC market drop to 7.4 percent in the third quarter of 2008 from 8.0 percent a year earlier, as it battled aggressive smaller rivals such as Acer (Taiwan:2353.TW - News) and Asustek (Taiwan:2357.TW - News), both of Taiwan, and Japan's Toshiba (Tokyo:6502.T - News).
All the industry's major players are also having to cope with increasing softness in the market due to reduced consumer and business spending in the global economic downturn.
According to a report earlier in the week in China's Caijing magazine, Lenovo, which acquired IBM's (NYSE:IBM - News) PC arm in 2005 for $1.25 billion, plans to lay off 200 employees at its headquarters in Beijing as it fights tough economic conditions. It has suspended hiring and plans to sack contractors at its factories, the magazine said.
China Business News, a Chinese-language business daily, reported earlier that Lenovo might merge its Greater China and Russia operations with its Asia-Pacific operations.
Goldman Sachs said in a research note earlier this week that though Lenovo has been undergoing some restructuring efforts since mid-2008, there remains the potential for further major restructuring plans. "Lenovo might be prompted to do the same due to increasingly difficult market conditions and thus needs to better streamline its organization," Goldman said.
Shares of the world's No. 4 personal computer tumbled 70 percent last year amid concerns about its eroding position in the worldwide market, compounded by effects of the sell-off in global stock markets. It shares rose 17.8 percent this week before the suspension.