Released on: 18, September 2006
, Author: Lap Shun John Hui
, Audience: Software related
Lap-Shun Hui, a known entrepreneur in the PC industry withmega-takeovers and low-cost PC components, wanted to buy the retail division ofGateway PCs for about $450M USD.
John Hui has bid for about $87M USD on the retail division of NEC but the deal hasfallen as Hui has placed his bid of $450M USD on the retail division of Gateway PCs.Gateway has a good hold over the computer market because of the eMachines brand nameassociated with them, which they bought from John Hui in June 2004. This shows afull circle of merger and acquisition is completed.
Due to not much effective reaction of Gateway to the changing techniques in thecomputer industry the stock price of Gateway has continued to decline. According toJohn Hui the Retail business should be separated from the Professional and Directbusinesses is the right strategic direction for Gateway and the only way for Gatewayto enhance its shareholder value, as these businesses require different salesapproach. Gateway is keeping very low margins due to their high cost expenses in thevery competitive computer business of today according to John Hui.
According to John Hui Gateway management team is not ready to constructively engagein discussions with and they should show some urgency in solving the problems thatare associated with the business strategies of Gateway. His offer was rejected sinceGateway management team has decided to retain Goldman, Sachs & Co. as theirfinancial advisor, and they themselves will do what ever they can for the benefitsof their shareholders.
Visit: http://www.johnhui.com
Source: Express-Press-Release.com
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