Global PC giant Dell (DELL) is rumored to be negotiating with local Chinese computer manufacturer Founder in hopes of acquiring the Chinese computing business.

Local media report that Kevin Rollins, CEO of Dell, expressed his intention of buying Founder's PC business in May 2006 when he visited Dell's production base in Suzhou. However, Wei Xin, president of Founder was apparently not satisfied with the price Dell offered at that time. Wei hopes that the price should be no less than US$1 billion and Founder wants to still hold some share of the company after the transaction. This will be the main focus of the parties' negotiations.

The acquisition of Founder will help Dell regain its advantage in direct-selling in the China market, which it is losing right now.

Dell has denied the rumors of a purchase.

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