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Gateway's board accepted takeover offer, Acer says

Bloomberg

Acer Inc, the world's fourth-largest maker of personal computers, said Gateway Inc's board has accepted its offer.

Gateway's directors unanimously agreed on the offer, Taipei-based Acer said in an e-mailed statement yesterday. Acer, which offered to acquire the company for approximately US$710 million, said it signed a "definitive" agreement on Aug. 27.

The endorsement moves Acer a step closer to overtaking Chinese rival Lenovo Group Ltd (聯想) as the world's third-largest PC maker. The takeover would double Acer's 5.2 percent market share in the US, and complete Gateway's plunge from the ranks of top independent PC makers.

Shares of Acer closed NT$3.10, or 5.6 percent, higher at NT$58.50 (US$1.77) at the close in Taipei yesterday.

Acer said last month it was planning to pay US$1.90 a share to buy Irvine, California-based Gateway. Acer spokeswoman Stella Chou (周之新) said yesterday the firm had bought 10 percent of Gateway as of Tuesday.

Separately, Gateway said yesterday it had agreed to sell its corporate business unit to MPC Corp for approximately US$90 million in a sale that will probably be completed in the fourth quarter.

Proceeds from the sale of the corporate business unit would be transferred to Acer once the Taiwanese company completes its purchase of Gateway, Acer spokesman Henry Wang (汪島雄) said.

Gateway's corporate business unit offers PCs and services to customers in education, medium-sized businesses and government.

Combined sales of Nampa, Idaho-based MPC and the Gateway unit last year were US$1.2 billion, the statement said.
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