China's Lenovo to re-aquire cellphone unit

HONG KONG: China's Lenovo, the world's No.4 PC seller, said on Friday that it will pay $200 million to re-aquire the cellphone business it sold off 1-½ years ago, as the lines blur between mobuile phones and PCs.

Lenovo spun off its mobile phone unit in 2008, saying at the time that the move was designed to help it return to its focus as a PC maker.

"Since the sale in 2008, Lenovo Mobile has noticeably improved its financial position and market presence under decisive management actions, and positioned itself for growth," Lenovo said in a statement to the Hong Kong Stock Exchange.

"The directors believe that through the acquisition the group can exploit Lenovo Mobile's experienced and successful leadership team in the China mobile industry."