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IBM selling $80 mln of Lenovo shares: term sheet


    HONG KONG (Reuters) - U.S. computer giant IBM shed more of its stake in top Chinese PC maker Lenovo Group Ltd , offloading up to $80 million worth of stock at a 3.9 percent to 7 percent discount to its closing price on Monday, according to a document sent to investors.

    International Business Machines Corp (IBM (IBM.NY) is selling 116.19 million shares in Lenovo, or a roughly 1.3 percent stake, at HK$5.19 to HK$5.36 per share, in a deal handled by Citigroup , the document said.

    After the share sale, IBM's holdings in Lenovo would drop to 4.7 percent, which falls below public disclosure requirements, from 5.96 percent, the document said.

    IBM acquired its stake in Lenovo at HK$2.675 a share in 2005, when the Chinese firm bought IBM's ailing PC arm for $1.25 billion, and has been selling it off in chunks as lock-up periods have lapsed.

    In April, IBM sold $83.6 million worth of Lenovo shares at HK$5.61 each.

    Lenovo's shares closed up 2.39 percent at HK$5.58 on Monday, lagging a 3 percent gain in Hong Kong's benchmark Hang Seng Index .

    (US$1=HK$7.8)

    (Reporting by Kennix Chim; Editing by Anne Marie Roantree)