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Rumor: Foxconn Wins $1.5B IIPC Deal
ChinaByte is quoting an unnamed source saying that IBM has agreed to sell its IIPC stake to Hon Hai Precision subsidiary Foxconn. The source did not elaborate on value or timetable of the deal but outside estimates value IBM's 80 percent stake at US$1.5 billion. Mainland PC maker Lenovo was also competing for IBM's stake in IIPC. After the transaction closes, IBM will outsource ThinkPad notebook production including the T43 and R51 series to IIPC. Hon Hai Precision is reportedly using the acquisition as a way to enter the notebook OEM business. Hon Hai is reported to have signed several notebook OEM agreements with Acer, Lenovo, and Sony ahead of the deal. Hon Hai Precision is world's second largest electronics OEM firm. IIPC is joint venture between IBM and Great Wall PC.
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