Lap Shun John Hui Desire For Gateway Acquisition

John Hui, who acquires the second largest shares of Gateways, a china-born business entrepreneur, has shown his interest in the year 2002 to the chairman and the founder of the Gateway Ted Waitt to acquire Gateway. John Hui is the co-founder of eMachines and also the founder of KDS.

Gateway ranks third in the computer market share in the United States, most of the machines of the Gateway are put on for sale in the market using retail-trading method. This was what John Hui was willing to buy at the cost of $450 million. Gateway implemented the low-cost computer maker's retail trading method which has in turn increases the company's sales by 64 percent in the second quarter.

But the other two selling techniques of Gateway that is Direct selling which is done via phone or web and Professional selling which is done to schools and government has bring down the companies sales by around 31 percent and 8 percent respectively. Besides the Gateway bid, John Hui is also closing in on buying the old computer brand, Packard Bell, from NEC Corp.

The Gateway has rejected the offer made by John Hui. According to Gateway the offer made by John Hui doesn’t seems to be beneficial for its shareholders. According to them the board of directors and management team of Gateway remain committed to taking the appropriate steps to enhance shareholder value

Visit: http://www.johnhui.com