IBM Calls China Bank Reports "Speculation" - InformationWeek
IoT
IoT
Business & Finance
News
11/13/2006
12:09 PM
50%
50%
RELATED EVENTS
Using Threat Data to Improve Your Cyber Defense
Aug 10, 2017
Attend this webinar to learn how you can determine which threats pose the greatest danger to your ...Read More>>

IBM Calls China Bank Reports "Speculation"

Media reports indicating IBM is pursuing a stake in a Chinese investment bank in partnership with Citigroup are rumor, spokesman says.

An IBM spokesman on Monday said that media reports indicating that the computing and tech services giant is pursuing a stake in a Chinese investment bank in partnership with Citigroup are "rumor and speculation." The spokesman declined further comment.

Reuters reported Monday that IBM is putting up a 5% stake as part of Citgroup's bid for control of the Guangdong Development Bank. The news agency attributed the information to unnamed sources that it said were familiar with the arrangement. IBM is one of the bank's main suppliers of computing systems.

Technology analyst Roger Kay said the move would make sense for IBM, as it would give the company a stake in a bank that's a major supplier of funds to Chinese businesses that IBM hopes will become big technology buyers as they grow. "It gives them a seat at the table," said Kay, of Endpoint Technologies, in an on-air interview with CNBC.

As part of its entry into the World Trade Organization, China must open its banking sector to foreign competition starting next month.

The investment would be consistent with other IBM moves of late. Last week, the company said it would launch a $180 million fund in partnership with Lehman Brothers to invest in midsize and mature Chinese companies. Earlier this year, IBM moved its head purchasing office from upstate New York to Shenzhen. IBM currently maintains a staff of about 7,000 in China, which boasts one of the world's fastest growing economies and has become a magnet for growth-challenged U.S. tech companies.

IBM also announced a minor acquisition on Monday. The company said it had acquired privately held Palisades Technology Partners for an undisclosed sum. The firm, based in Englewood Cliffs, N.J., has developed a Web-based lending management platform for the financial services industry.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Strategies to Conquer the Cloud
Chances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll