Gateway receives $450m bid for its retail operations
Board of directors to review the bid
Gateway has received a $450m bid for its retail operations from the founder of eMachines, Lap Shun Hui.
China-born entrepreneur Hui sold low-cost PC maker eMachines to Gateway in March 2004 for $290m in cash and stock. He is now Gateway’s second-largest shareholder behind company founder Ted Waitt.
Gateway confirmed that it has received an unsolicited expression of interest from Hui to acquire Gateway’s retail operations.
A company statement said: “The Gateway board of directors will be reviewing the expression of interest with the help of its financial and legal advisors in accordance with its fiduciary obligations. Goldman, Sachs & Co. is serving as financial advisor to Gateway. Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal counsel.”
Earlier this month, Gateway reported a second-quarter loss of $7.7m on turnover of $919m.