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Gateway snubs $450M takeover

Hui told to shoo
By Nick Farrell
Mon Sep 04 2006, 08:40
THE TROUBLED flogger of tin, Gateware has snubbed an unsolicited $450 million bid for its retail business by the former owner of eMachines Lap Shun Hui.

Hui flogged his eMachines retail business to Gateway for $290 million in cash and stock and was now offering to buy it back.

Gateway said the offer for the retail operations is not in the best interest of its shareholders.

This has been confirmed by many of the analysts looking into the deal. In many respects the purchase of eMachine's retail operation was the best thing that happened to Gateway. If it hadn't then chances are the entire operation would have gone belly up by now.

Rob Enderle, an analyst with the Enderle Group research firm told AP that if Gateway had sold its retail outfit back, what was left of Gateway would be nonviable.

More here.

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