(Adds Dell comment about Johnson's position in sixth graph.)
By Ben Charny
Of DOW JONES NEWSWIRES
SAN FRANCISCO -(Dow Jones)- A U.S. appellate court has lifted restrictions that limited what former International Business Machines Corp. (IBM) mergers-and-acquisitions strategy chief David Johnson can do for Dell Inc. (DELL), his new employer.
The decision is a timely victory for Dell. The world's No. 2 computer seller is now actively shopping for business information-technology manufacturers in order to fill gaps, or strengthen weak spots in its business products portfolio, and it could use Johnson's expertise.
"We respectfully disagree with the court's decision, and will press ahead to protect our intellectual property, trade secrets and business confidential information," said IBM spokesman Doug Shelton.
Johnson, who had worked for IBM for 27 years, told the company in May he was planning to depart for Dell. IBM sued, seeking to stop the move based on a noncompete agreement the company said Johnson signed in 2005. Johnson has claimed that any agreement he signed is invalid.
According to his attorney, Johnson is senior vice president of strategy at Dell, where he has a broad set of responsibilities. A Dell spokesman said Johnson's responsibilities don't, however, include mergers and acquisitions.
Since May, Johnson has been forced to limit his activities at Dell to what is called "learning mode" as IBM pursued its lawsuit. In a one-page ruling late Wednesday, the U.S. Court of Appeals for the Second Circuit set aside those restrictions.
The decision follows another blow to IBM on June 26, when a U.S. District Court judge hearing the company's lawsuit against Johnson denied its request for a show-cause hearing.
Dell shares Thursday were trading 3% lower at $12.99. IBM shares were off 2.2% at $102.48.
-By Ben Charny, Dow Jones Newswires; 415-765-8230; ben.charny@dowjones.com