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Lenovo Said to Agree to Higher Than Usual Break Fee With IBM

Lenovo Group Ltd. will pay International Business Machines Corp. a fee that’s more than double the typical size should it fail to acquire IBM’s low-end server unit, people familiar with the matter said.

Lenovo agreed to pay a reverse breakup fee of 8 percent to 9 percent of the $2.3 billion purchase price, or about $200 million, one of the people said, asking not to be identified because the details are private. Such fees, where a buyer agrees to compensate the seller for not closing a deal, are typically about 3.5 percent, data compiled by Bloomberg show.