IBM is selling off more stake in PC maker Lenovo, selling shares after Tuesday's close on the Hong Kong Stock Exchange.

IBM  is selling 223 million Lenovo shares, or roughly one-third of its remaining holding, in a deal handled by Citigroup.

Tuesday's share sale follows a similar move in February, when IBM, Lenovo's second largest shareholder after the Chinese government, raised $123 million by selling 300 million shares.

IBM held about 7.4 percent of Lenovo before Tuesday's sale. It acquired its Lenovo stake when the Chinese company bought IBM's ailing PC arm for $1.75 billion in 2005.

Under that deal, IBM had been entitled to sell a third of its shares every year between May 2006 and May 2008. But it struck a deal last year that allowed it to exit its holding by November 2007--six months earlier than previously agreed.

By: Docmemory
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