Lenovo, Sharp to partner in TV manufacturing, say reports

Lenovo, the world's second-largest supplier of personal computers, may be gearing up to enter the television-manufacturing business with Japan's Sharp as partner, according to reports yesterday.

Citing unnamed sources, both the Nikkei daily and Jiji Press reported that Sharp was negotiating to sell its liquid-crystal display (LCD) television assembly plant in Nanjing to Lenovo and then establish a joint venture with the computer maker to sell televisions on the mainland.

The news may have rattled some investors as Lenovo's shares dipped as low as HK$7.57 after the midday break from a high of HK$7.80 in early trading yesterday. The stock closed at HK$7.65, down 1.16 per cent.

In Tokyo, the reports helped boost Sharp, which gained 7.3 per cent to finish at 338 yen (HK$29.65), its highest close since July 11.

Lenovo spokeswoman Angela Lee said the company "does not comment on market rumours and speculation".

In a statement to the Tokyo Stock Exchange, Sharp said it had not made an announcement about the reported talks.