IBM Divests JAL IT StakeIBM Divests JAL IT Stake

IBM has sold its share of JAL's information technology unit back to the cash-strapped airline, according to a report by Japan's Nikkei news service.

Financial terms were not disclosed.

Under the agreement, IBM returned the entirety of its 51% stake in JAL Information Technology Co. to JAL. The deal also calls for about 1,000 JAL IT workers will join JAL group, according to the news service.

IBM will reportedly continue to provide systems maintenance and management services to JAL, while the airline will take over the development of flight operations systems.

The represents a reversal of a recent trend that has seen large enterprise businesses, such as oil giant Schlumberger, sell off their IT services arms to specialist companies like IBM.

IBM and JAL first joined forces in 2001 in a pact that saw the creation of a joint IT venture between the two companies. IBM owned a 51% share, while JAL held a 41.5% stake and Nippon Information Industry Corp. held 7.5% of the company.

JAL has been under financial pressure and recently submitted a reorganization plan Japanese authorities. The 8th Division of Tokyo's civil district court approved the plan on Nov. 30.

IBM shares were off .24%, to $147.29, in late morning trading Wednesday. The company is expected to report fourth quarter and full-year earnings on Jan. 18. For the quarter, analysts expect IBM to post earnings per share of $4.08, on revenue of $28.27 billion.

IBM is expected to report full-year EPS of $11.44, on revenue of $99.17 billion.