Chinese computer colossus may acquire Korea’s Trigem

Chinese computer giant Lenovo is considering taking over Korean PC producer Trigem Computer, its Korean unit said yesterday. Trigem Computer Inc. has been in court receivership since May, 2005. “We have submitted a letter of intent to Suwon District Court seeking to purchase Trigem jointly with the headquarters,” a Lenovo Korea official said. Lenovo, China’s largest computer manufacturer, has been pushing to expand its presence in overseas markets. Last year, it acquired the personal computer unit of the U.S. computer giant International Business Machines Corp. and sold its popular ThinkPad model. Seven companies, including Lenovo, declared their intent, according to Samjung KPMG, lead manager of the sale. Bidding to select a preferred negotiator is set for Sept. 27. Trigem Computer, established in 1980 with initial capital of 10 million won ($10,405), grew into one of Korea’s leading computer manufacturers in the past decade. Facing sluggish sales in recent years, the company pushed for corporate restructuring and sought high-margin business. The computer maker, 56 percent owned by state-run Korea Development Bank, is a lucrative takeover target. It operates plants in China, Mexico, and the Netherlands along with local facilities. It can produce 7 million computers a year. Market observers estimate the acquisition cost for Trigem at 200 billion won to 250 billion won.