October 6, 2016
TOKYO (AFP) - Fujitsu shares soared Thursday on reports that the Japanese IT giant is considering merging its struggling personal computer division with China's Lenovo, the world's biggest PC maker.
The Japanese firm's Tokyo-listed stock surged 7.02 percent to 576.0 yen by the midday break in response to the story in the leading Nikkei business daily.
The paper said the merger was among a number of options that Fujitsu was considering for the money-losing unit. It did not give financial details.
In response, the conglomerate confirmed it is looking at "various possibilities including the reported move". No final decision had been made, it added.
The reports by the Nikkei and other Japanese media said Fujitsu and Lenovo were aiming to reach a deal by the end of this month as Fujitsu looks to focus more on its IT services business.
Possible options include transferring Fujitsu's PC design, development and manufacturing operations to a Lenovo-led joint venture, the Nikkei said.
Another option could see Lenovo taking a majority stake in Fujitsu's PC subsidiary, it said.
Either move could see about 2,000 Fujitsu employees move over to Lenovo, it said.
Lenovo already has a PC joint venture with Japan's NEC.
FUJITSU (isin = JP3818000006)
LENOVO GROUP (isin = HK0992009065)
NEC (isin = JP3733000008)