BEIJING, Jan. 26-- A US government panel is reviewing the deal that would give PC giant IBM to China's largest personal computer-maker Lenovo.

The US Treasury Department's Committee on Foreign Investments in the United States, or CFIUS, says it is reviewing the 1.25 billion dollar deal amidst concerns that it could compromise US national security.

The Committee is a multi-agency panel that reviews acquisitions of U.S. businesses by foreign companies.

Michael Wessel is a member of the U.S.-China Review Commission.

"They've got real concerns about the transaction. The CFIUS review is a national security review both traditional security issues as well as economic security."

The Committee is expected to decide by Friday, Jan. 28, whether to launch a formal investigation into whether the IBM-Lenovo deal threatens national security.

IBM, which needs the approval of the Committee to complete the deal, said in a statement that it was cooperating with the review and has filed the required legal notice with the Committee.

A spokeswoman for the US Treasury Department, which chairs the Committee, said the agency is barred from commenting on any matters before the panel.

In December last year, Lenovo reached a deal to buy IBM's personal computer business in what is the largest foreign acquisition by a Chinese company.

Shares of Hong Kong-traded Lenovo were up 4.9 percent in afternoon trade on Monday. Lenovo's shares have shed around 20 percent since it announced the deal last month.

(Source: CRIENGLISH.com)