(RTTNews) -  Saturday, the U.S. Court of Appeals for the Second Circuit, has rejected International Business Machines Corp.'s (IBM: News ) appeal to impede the company's former merger and acquisition head, David Johnson from carry out his duties in Dell Inc. (DELL: News ).

In an appeal filed by IBM, the company has requested the court that David Johnson signed one year non-competition agreement during his appointment in the company. However, he violated the agreement by joining the company's arch rival Dell, after resigning from IBM.

It is said that Johnson has signed purposely in a wrong box on the agreement, and thus IBM's argument is invalid.

However, the court rejected IBM's claim by stating, "IBM failed to make sufficient showings that it had a likelihood of success on the merits or that a balance of the hardships tipped decidedly in its favor."
And finally, the court concluded that all of all of IBM's arguments are without merit. Accordingly, the June 26, 2009 order of the district court is affirmed.

Currently, in Dell, Dave Johnson serves as senior vice president, corporate strategy. In his role, he works with Michael Dell on the development of short- and long-term strategy, and also with leaders of the company's four international business units on their respective growth strategies.

IBM closed Friday's regular trading session at $120.36, down $2.33 or 1.90% on a volume of 6.8 million shares.\

To receive FREE breaking news email alerts for International Business Machines Corp and others in your portfolio

by RTT Staff Writer

For comments and feedback: contact editorial@rttnews.com