Global Dispatches: China aims to cut its stake in Lenovo

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China Looks to Cut Lenovo Stake

BEIJING -- The Chinese Academy of Sciences, a state-run research institute, announced earlier this month that it is looking to sell part of its 65% stake in Legend Holdings Ltd., the parent company of Lenovo Group Ltd., for 2.76 billion yuan ($404 million U.S.).

The planned sale of a 29% stake would reduce the academy's holdings in the PC maker to 35%, according to a spokesman. The government is seeking a buyer with expertise in capital management and marketing, he added.

The buyer must agree not to resell its stake, alter Legend's strategy or propose changes to the company's executive base for five years, the academy said in a statement.

Lenovo declined to comment.

— Owen Fletcher, IDG News Service

HP's Mphasis to Buy AIG Services Unit

BANGALORE, India -- Hewlett-Packard Co.'s Mphasis services subsidiary this month agreed to acquire AIG Systems Solutions Ltd., the Indian IT services arm of New York-based insurer American International Group Inc., for an undisclosed sum.

The AIG unit employs 800 people in Chennai and Kolkata and provides IT services to AIG units worldwide.

Ganesh Ayyar, CEO of Bangalore-based Mphasis, said the acquisition should boost his firm's presence and expertise in the insurance and financial services markets.

— John Ribeiro, IDG News Service

Briefly Noted

Amity University in Noida, India, last week announced plans to offer online IT degree programs to 100,000 students on the African continent over the next five years. The $116 million (U.S.) program to train students in 53 countries is being funded by the government of India. The country hopes the investment will help boost Indian sales of telecommunications gear in Africa.

— Edris Kisambira, Computerworld Uganda

Read more about IT in Government in Computerworld's IT in Government Topic Center.