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Technology Stocks : IBM

IBM 306.44

-1.9%

Nov 7 9:30 AM EST

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To: JakeStraw who wrote (8020)	12/9/2004 12:45:57 PM
From: Kirk ©	Read Replies (2) of 8218

yup... Dell not worried. The major emerging market for PCs just bought a #3 market share from a company with far more history than Dell. Part of the deal is they get IBM employees and IBM help for the transition. IBM will want to see it go well since they own part of the venture. It might be a way to get a major offshore partner to grease the greedy Chinese government skids so IBM can have a competitive advantage selling PCs with their name on them for a few years to compete with lower priced service contracts at HP and Dell. Michael Dell would be a fool to not worry and he is no fool. Stating that many mergers don't go well is obvious but China could be doing this more for "face" and "R&D expertise from IBM" than for pure business gains. THis is how the Asian Emerging markets get US technology and expertise. It will show on the bottom lines of other companies that will be run by the managers who learn from IBM then leave to form their own companies in China. I saw it happen in the 1980's and 1990's when I was at HP and we kept transferring technology and jobs to Singapore and Malaysia.

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