The Chinese Academy of Sciences Holding Company, the controlling shareholder of Lenovo's parent company wants to sell its 29 percent stake in Legend Holdings.

The academy, which is controlled by state, is seeking 2.76 billion Chinese Yuan, equivalent to approximately 404 million dollars for its 29 percent stake.

At present, The Chinese Academy possesses 65 percent of Legend.

The bidder should possess no less than 4 billion Yuan of registered capital and should not be supported by foreign investors.

Last week, Lenovo reported a loss of 16 million dollars for Q2 ended June 30 due to a steep decline in the demand and prices of its PCs. Revenue plunged by a fifth, to settle at 3.46 billion dollars.

Lenovo is the largest personal computer producer in China and enjoys fourth position worldwide.