IBM global networks rumoured to be on the market

NEWS The Wall Street Journal has reported that IBM has put its global networks operation up for sale. The computer giant - which under the leadership of Lou Gerstner is already said to be looking to divest its printer business - could net around $4bn from such a sale. Merrill Lynch is understood to be advising the company. IBM's global network grew out of the company's internal communications system, but in recent years Big Blue has turned it into a multibillion dollar business unit - under the Global Services wing of the company - serving multinationals which have increasingly looked for a single, 'one-stop shop' telecoms supplier. The unit also provides behind-the-scenes Internet connectivity for some US telcos offering Internet services. A raft of potential buyers are said to be taking a look at the business, including established players such as BT, AT&T and several US Baby Bells, and relative newcomers with a leaning towards data and Internet services, such as WorldCom and Equant. Some observers have noted that a sale of IBM's global networks operation would make sense, as it would allow the company to cut its massive cost base while still being able to offer services to the buyer of the unit. IBM refused to comment.