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

WWI French tank picture via Shutterstock
Vinod_Khosla

Chris Mellor

A VC with startup agenda slams established suppliers. Surprised? Neither were we
ZenPad_RealRacing
Boy writes a letter to Santa. Pic via Shutterstock

Kat Hall

Cornwall's win over BT should be a cautionary relationship tale

Features

Eclipse image via Shutterstock
The Azure Portal: Microsoft is betting on cloud for its future business
container_ship_hamburg_shutterstock_648
Michael Dell. Pic by Joi Ito
Cool Texas dude is just your average billionaire