August 27, 2007
Acer buys gateway
San Jose Mercury News - Acer buying Gateway to create world's 3rd-largest PC vendorAcer Inc. plans to acquire U.S. computer maker Gateway Inc. for $710 million in a deal that will push the Taiwanese company past China's Lenovo Group as the world's third largest vendor of personal computers.
Acer said Monday it is offering to buy Gateway for $1.90 per share - representing a premium of 57 percent to Gateway's Friday closing price of $1.21, but only 2 percent of Gateway's high of $82.50 in late 1999.
Shares in Gateway increased 59 cents, or 49 percent, to $1.80 in morning trading Monday.
With the acquisition, Acer will absorb a company founded in 1985 in an Iowa farmhouse and known for packaging computers in cow-spotted boxes. Now based in Irvine, Calif., Gateway struggled in recent years amid fierce competition and had difficulty selling its products over the Internet and the phone.
interesting
Posted by TY at August 27, 2007 11:14 AM
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