Acer shares tumble following Gateway bid

0 Comments | AFP, August, 2007

TAIPEI (AFP) — Wary investors on Tuesday snubbed plans by Taiwanese computer vendor Acer to boost its global presence through a friendly takeover of US-based Gateway, sending the company's stock tumbling 7.0 percent.

Dealers said investors feared Acer was paying too much for Gateway in its 1.90 dollar a share offer which values the group at 710 million US dollars and represents a 57 percent premium over Gateway's closing level on Friday.

"This reflects prevailing concerns among foreign and domestic investors," analyst Hank Chen of National Investment Trust told AFP. "Acer's payment is higher than expected."

Acer closed down its daily limit of 7.0 percent, or 4.40 Taiwan dollars at 59.20, on volume of 34.72 million shares, in sharp contrast to the electronics...