Lenovo, which was responsible for corporate China's most significant overseas takeover when it bought IBM's PC arm two years ago, is in talks to buy Paris-based Packard Bell from John Hui, a Chinese-American businessman.
Lenovo is understood to be in exclusive talks with Mr Hui despite reported interest in Packard Bell from Acer, the Taiwanese manufacturer that is vying with Lenovo for the number three position in the global PC industry.
Previous Chinese takeovers of foreign companies have caused a political firestorm in the US, while European governments have also shown resistance to such deals.
A transaction would also have a significant impact on Britain's PC retail market. Packard Bell claims to be among the top three PC brands in the UK.
Mr Hui bought Packard Bell less than a year ago from Japan's NEC. (Source: Mark Kleinman in Hong Kong , Telegraph.co.uk, Aug 8, 2007)