Lenovo offered 18,00 Brazilian Reals (US$7.70) per share to acquire a majority stake, but an agreement couldn't be reached as it wasn't in the best interest of Positivo's shareholders, said Duda Salvato, a company spokesman said.

However, Positivo is open to an alliance with Lenovo or other PC makers, Salvato said. Such an alliance could be aimed at PC distribution, for instance.

Given the economic turmoil and uncertainties, Lenovo and Positivo agreed that it was not feasible to reach agreement on a transaction at this time, said Ray Gorman, a Lenovo spokesman. However, both the companies are looking at getting into a strategic alliance.

"The companies affirmed that there is significant value in collaboration and are exploring a broad strategic alliance that creates long-term shareholder value for both companies without a transaction," Gorman said.

Lenovo is on a shopping spree for PC makers, taking advantage of a stagnant worldwide market to expand its global presence. However, Positivo has not received another offer from Lenovo, Salvato said. Positivo also seems to have shut down the idea of continuing negotiations with the Chinese PC vendor.