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Ibm Says Sale Of Low-End Server Business Gets Regulator Approval


Ron Burgundy
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A worker is pictured behind a logo at the IBM stand on the CeBIT computer fair in Hanover(Reuters) - International Business Machines Corp IBM.N said on Friday that U.S. regulators had approved the $2.3 billion sale of its low-end server business to Lenovo Group Ltd 0992.HK, as the company continues its shift to more profitable software and services like cloud computing and data analytics. The approval by the Committee on Foreign Investment in the United States came despite CIFUS members' concern, first reported by the Wall Street Journal earlier this year, that IBM servers used in the Pentagon's networks could be accessed remotely by Chinese spies and compromised. Lenovo has been through the secretive CFIUS process three times before and has won approval each time, according to a source familiar with the process. Lenovo said in a statement that it remains on track to close the IBM server deal by the end of the year.




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