China's Lenovo Group in talks to buy Packard Bell

HONG KONG (AP) - Lenovo Group Ltd., the world's No. 3 personal computer maker, is in talks to buy Europe's Packard Bell BV to continue its expansion into foreign markets.

Beijing-based Lenovo made the announcement in a statement to the Hong Kong Stock Exchange late Tuesday, without disclosing further details.

Tokyo-based electronics manufacturer NEC Corp. sold Netherlands-based Packard Bell last year to John Hui, the former owner of e-Machines.

Lenovo, one of a handful of Chinese companies trying to create global brand names, launched a campaign to expand its presence in foreign markets after acquiring IBM Corp.'s personal computer unit in 2005.

Last week, it reported a 12-fold jump in quarterly profits that beat market expectations as the company made progress in efforts to build its global brand.

Profits rose to US$66.8 million for the April-June quarter on strong sales in China and the Americas, up from US$5.2 million in the same period a year ago, the company said.

Lenovo's Hong Kong-listed shares were up 2.24 percent at HK$5.02 midday.