Amid talk that three US venture capital firms are set to take a stake in Lenovo Group, the company's stock remained suspended from trading in Hong Kong for a third day on Wednesday pending an announcement from the company.
"We are planning an announcement," a spokespersoan for Lenovo, Angela Lee, said. She declined to say when that announcement will be made. "We have no further comment at this time," she said.
Lenovo's shares were suspended on March 24 after a report in The Wall Street Journal said that three US venture capital firms - Texas Pacific Group, General Atlantic and Newbridge Capital - planned to invest $US350 million in the company.
Lee declined to comment on the report.
However, the report appears to be accurate, according to Helen Lau, an analyst at Celestial Asia Securities Holdings.
Lau said that Texas Pacific had expressed an interest in acquiring IBM's PC division before it was sold to Lenovo.
"It's logical for them to want to invest in Lenovo," she said.
Following the release of these reports, Lenovo's stock jumped 4 per cent during the first six minutes of trading on March 24, prompting Lenovo to request that its shares be suspended from trading, a normal practice in Hong Kong when a company plans to announce a significant transaction, Lau said.
"The market reacted very positively to this news," she said.
Wednesday is the third trading day that the stock has been suspended in Hong Kong.
The Stock Exchange of Hong Kong was closed for the Easter holiday on Friday, March 25 and Monday, March 28.
This suspension should not last much longer, Lau said.
"Everything should be clear when Lenovo's shares resume trading," she said.