Donews Beijing, Dec. 14 (Shen Lijun):Recently, though there have been gossip circulating rumors Dell wants to buythe PC business of Founder Technology. If this news is confirmed, and that theIT industry is the second Lenovo's acquisition of IBM PC business after anotherblockbuster, PC pattern is bound to face enormous shuffle.

After many confirmation, so far only somesporadic but may be more important information.

1, it is said, Dell is currently andFounder secret negotiations, wants to buy the PC business owned by FounderTechnology. Allegedly, this acquisition has been increasingly clear, and mayhave entered the stage of concrete negotiations. There are insider disclosedthat the contact between the two sides began in May of this year, the visit toChina at the time Dell global CEO Kevin Rollins meeting in Shenzhen FounderGroup Chairman Wei Xin. Since then, Rollins (Dell inspection team) also visitedthe Founder Technology's production base is located in Suzhou, very satisfied with their position;

2, said that the focus of the negotiationsthe two sides mainly in the way of acquisition or joint problems. According toindustry analysts, the transaction is likely to take the form of divestment,the transaction price shall not be less than 800 million U.S. dollars, theFounder Group, will remain for the controlling stake of Founder Technology;Dell in the PC business of Founder Technology the direct sales and distributionin the Chinese market at the same time, its post-merger market share of about 23percent, greatly approximation Lenovo, Lenovo's threat is obvious.

The industry watchers analysis the abovenews credibility. Rely on direct sales model to become a global PC leader Dellis facing a bottleneck in the development. Recently introduced in the marketresearch firm iSuppli report shows that the third quarter of this year, HP hassurpassed Dell, although the two sides of the gap is only 0.2 percentagepoints, but the news for the recent sluggish growth rather capital marketscriticized Dell is no different to worse.

In order to reverse the unfavorablesituation, the huge potential of the Chinese market has become the top priorityof the Dell revive plans. Dell's market share of close to 10% since 1998 toenter the Chinese market, but compared to more than 30% share of the local bossLenovo, there is still a significant gap. More critical is the direct salesmodel, Dell has always insisted in the market structure is more complex Chinesemarket, did not become a weapon into a disadvantage.

Currently, the country can enter the Delldiscernment Founder. Founder rely on their own understanding of the Chinese PCmarket, firmly occupy the PC second place for up to 7 years old. Thedistribution system has been rooted in the county or city level market is moreperfect, naturally much interested let Dell.

If the message was eventually confirmed,should be regarded as good news for the domestic PC industry. Industry analystsbelieve that the Founder The PC business with Dell is a rational choice.Although the PC business in the overall architecture occupies a larger scale,but in fact the profit contribution is not large. Especially in Lenovo'sacquisition of IBM PC business, the competitive landscape of the PC marketchange significantly, Founder move Sensibly pragmatic move.

Once Founder PC business divestment, willbe able to get a huge amount of cash income, you can increase the input PCB(Multilayer PCB) industry scale difficult to achieve PC, but the level ofprofits may catch up; Founder Group's effort to build the chip project, therewill likely choose the injection Founder.