Lenovo shares dive amid downgrade, IBM share sale

HONG KONG Tue Jul 22, 2008 4:01am BST

A photographer takes photos in front of a screen during a Lenovo Group Ltd. news conference in Hong Kong May 23, 2007. REUTERS/Paul Yeung

A photographer takes photos in front of a screen during a Lenovo Group Ltd. news conference in Hong Kong May 23, 2007.

Credit: Reuters/Paul Yeung

Quotes

   

HONG KONG (Reuters) - Shares of top Chinese PC maker Lenovo Group Ltd (0992.HK) fell 5.02 percent after a broker downgrade and a sale of the company's shares by International Business Machines Corp's (IBM.N).

Shares of Lenovo were set to open at HK$5.3 on Tuesday, compared with its previous close of HK$5.58.

JP Morgan downgraded Lenovo to neutral from overweight due to a near-term slowdown in revenue growth from weak China demand and a slower ramp-up of the U.S. consumer business.

The downgrade came soon after U.S. computer giant International Business Machines Corp (IBM) (IBM.N) sold $77.3 million worth of Lenovo shares.

IBM sold 116.19 million shares, or a roughly 1.3 percent stake in Lenovo, at HK$5.19 each, the bottom of a range of HK$5.19 to HK$5.36 per share, a source close to the deal said.

(Reporting by Donny Kwok; Editing by Anne Marie Roantree)