Lenovo Group Ltd., the worldâ€™s third-largest computer maker, announced on Tuesday that it is in talks to acquire Netherlands-based Packard Bell.
The firm said in an official release that the discussion includes an unidentified third party, but nothing has been confirmed.
Packard-Bell is currently the property of the former owner of e-Machines, John Hui, who bought it from Japanese electronics firm NEC.
The move comes as Lenovo is looking to expand globally after a period of financial difficulties. Three years ago, it bought IBM's PC business for $1.25 billion.
Meanwhile, Taiwanâ€™s Acer is also looking to buy Packard Bell, according to Hong-Kong Press.
Packard Bell, which was part of the consumer arm of NEC is going through a difficult period with losses of $34 million in the 2006-2007 fiscal year with a turnover of $1.59 billion. The firm makes PCs, TV screens, monitors, MP3 players and GPS equipment.
Packard Bell had once held 15 percent of U.S. market in terms of units shipped. After NEC gained ownership, the group progressively withdrew from the U.S. to focus on Europe.