The Channel logo

News

By | Tony Smith 1st September 2006 15:28

Gateway board dismisses eMachines founder's buy-back offer

Not good for shareholders

Gateway's board of directors has rejected eMachines' founder Lap Shun Hui's offer to buy its retail business for $450m, claiming the offer is "not in the best interest of shareholders".

Why it's not, they didn't say, but the board maintained it had arrived at this conclusion after carefully pondering the matter and taking soundings from its financial and legal advisors.

Hui made the offer in early August, but the board did not respond until last week, simply to say it was considering the unsolicited offer.

Hui founded eMachines in 1998 to offer US buyers low-cost PCs. Gateway acquired the company in March 2004. Formed as a manufacturer-retailer, Gateway later shut down its bricks'n'mortar stores, choosing instead to sell online and through partners. It currently maintains eMachines as a separate brand.

Last month, Gateway, the third largest US PC builder, reported a Q2 loss of $7.7m on revenues of $919m. ®

alert Send corrections

Opinion

frustration_anger_irritation_annoyance pain

Felipe Costa

Pressure to perform for stock market bearing down on disties
Columns of coins in the cloud

Michael Cote

Anything that simple to use has got to be complex to set up
Internet of Things

Gavin Clarke

This time, Larry's Oracle is going after the networking giants

Features

No email? No CRM? No Daily Mail iPad edition? You need a plan
Sinofsky's hybrid strategy looks dafter than ever
Failure to crack next-gen semiconductors threatens to set back humanity
SMEs get lip service - what they need is dinner at the Club