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

Chris Mellor

Drives nails forged with Red Hat iron into VCE's coffin
Sleep Cycle iOS app screenshot

Trevor Pott

Forget big-spending globo biz: it's about the consumer... and he's desperate for a nap
Steve Bennet, ex-Symantec CEO

Chris Mellor

Enormo security firm needs to get serious about acquisitions

Features

Windows 8.1 Update  Storeapps Taskbar
Chinese Buffet self-service
Chopping down the phone tree to scrump low-hanging fruit
An original member of the System/360 family announced in 1964, the Model 50 was the most powerful unit in the medium price range.
Big Blue's big $5bn bet adjusted, modified, reduced, back for more
Microsoft CEO Satya Nadella
Redmond needs to discover the mathematics of trust