IBM sold off a chunk of its stake in Lenovo Group, leading the world’s third-largest PC vendor to temporarily suspend trading of its shares in Hong Kong on Tuesday.Lenovo spokeswoman Angela Lee said IBM had informed the company it planned to sell a large block of shares but had not provided specific details of the transaction. IBM did not immediately respond to a request for comment.“The trading of Lenovo’s shares has been suspended at our request, pending the release of an announcement…relating to the placing of Lenovo’s shares by IBM,” Lee said. At 2:40 p.m. local time Tuesday, trading of the company’s shares remained suspended.Lenovo’s shares were trading at Hong Kong $3.20 (US$0.41) per share when they were suspended, a drop of 7 percent from the previous day’s close. That price matches the reported selling price IBM received for its shares, which were offered to investors at a discount, according to several press reports Tuesday. Citing information offered to investors, those reports said IBM sold 300 million shares in Lenovo Group in a sale worth HK$960 million.IBM, which sold its PC division to Lenovo in 2005, has gradually reduced its stake in Lenovo since that deal. A further sale of shares would be in keeping with the company’s stated plan to sell down its stake in Lenovo. Prior to the reported sale, IBM held a 13.2 percent stake in Lenovo, making it the company’s second-largest shareholder. The sale of shares—estimated at 3.5 percent of Lenovo’s total shares—will reduce IBM’s holdings to 9.7 percent.While IBM reduces its stake in Lenovo, the two companies remain close partners. Lenovo Tuesday announced the signing of a five-year agreement for IBM to provide technical support, installation, deployment and other PC-related services to its customers. The deal could be worth up to US$245 million to IBM, Lenovo said in a filing to the Hong Kong stock exchange.-Sumner Lemon, IDG News Service (Singapore Bureau)Related Link: Lenovo Q3 Profits Up Despite Flat SalesCheck out our CIO News Alerts and Tech Informer pages for more updated news coverage. Related content brandpost Sponsored by AWS in collaboration with IBM How digital twin technology is changing complex industrial processes forever As the use cases for digital twins proliferate, it is becoming clear that data-driven enterprises with a track record of innovation stand the best chance of success. By Laura McEwan Dec 05, 2023 4 mins Digital Transformation brandpost Sponsored by AWS in collaboration with IBM Why modernising applications needs to be a ‘must’ for businesses seeking growth Around one-third of enterprises are spending heavily on application modernisation and aiming for cloud native status. The implications for corporate culture, structure and priorities will be profound. By Laura McEwan Dec 05, 2023 5 mins Digital Transformation opinion 11 ways to reduce your IT costs now Reorienting IT’s budget toward future opportunities is a big reason why CIOs should review their IT portfolios with an eye toward curbing unnecessary spending and realizing maximum value from every IT investment. By Stephanie Overby Dec 05, 2023 11 mins Budget Cloud Management IT Governance news analysis SAP faces breakdown in trust over innovation plans The company’s plan to offer future innovations in S/4HANA only to subscribers of its Rise with SAP offering is alienating customers, user conference hears. By Peter Sayer Dec 05, 2023 6 mins SAP Cloud Management Innovation Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe