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IBM Makes Effort To Relax Security Concerns
IBM offered a set of concessions to U.S. national-security regulators in an effort to overcome security concerns raised by its deal with Lenovo.
IBM and Lenovo want to show the Foreign Investment in the US (CFIUS) that if modest security measures are taken there will be no national security technology or knowledge given to the China.
According to a Bloomberg article,
"IBM made the proposal yesterday to the Committee on Foreign Investment in the United States, the government body that must approve the $1.25 billion sale. After a three-hour meeting in Washington, the committee failed to reach a decision on whether IBM's offer goes far enough, the people said.
The concessions include preventing Lenovo from knowing the names of IBM's U.S. government customers, physically sealing off buildings in a shared office park and moving thousands of employees to other locations. If put into place, they could put the PC unit at a competitive disadvantage to such rivals as Dell Inc. and Hewlett-Packard Co., said Andrew Neff, a Bear Stearns & Co. analyst who follows the computer industry."
"There's no question they would use this to try to siphon off sales," said Neff.
IBM agreed to sell its PC division to Lenovo in December.
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