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Acer shares fall for second day on concerns over Gateway buy

Acer shares fall for second day on concerns over Gateway buy

Acer Inc. shares posted a record two-day decline after the Taiwan computer supplier said it will buy Gateway Inc. and analysts cut their ratings on concern the purchase price is too high.
Acer, the world's fourth-largest personal-computer maker, fell 6.9 percent, its daily limit, to NT$55.10 at the close in Taipei. It was the largest two-day drop since the company's September 1996 initial public offering.
The Taipei-based company agreed to pay US$710 million for Irvine, California-based Gateway to overtake China rival Lenovo Group Ltd. as the world's third-largest maker of PCs and add western customers. The offer is 57 percent more than Gateway's closing price before the statement.
The bid is "expensive," Arthur Hsieh, a Taipei-based analyst at UBS AG, wrote in a report Tuesday. "Gateway is losing market share globally."
Gateway's global market share slipped to 1.8 percent in the second quarter, from 2.1 percent the previous quarter, while the company's share in the U.S. declined to 5.6 percent in the second quarter from 7 percent in the first three months, research company IDC wrote in a report last month.
Macquarie Securities Ltd. and Yuanta Core Pacific Securities also downgraded their rating on Acer since the deal was announced after the market closed August 17.


Updated : 2021-01-21 11:13 GMT+08:00