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EM Holdings Makes $117 Million Offer For eMachines

11/15/2001 11:26:00 AM Eastern

New York - Entry-level PC maker eMachines has confirmed that EM Holdings, a Taiwanese high-tech firm owned by one of eMachines directors, has offered to buy out the struggling PC company for an estimated $117.5 million.

Lap Shun (John) Hui, owner EM Holdings, tendered an offer late last month to purchase eMachines. The PC company confirmed the offer last Friday saying EM Holdings was willing to pay $0.78 per share for eMachines, well above the 43 cents per share that the company was trading at on. The PC maker has retained Credit Suisse First Boston to consult on the potential deal.

'Our board, with the help of its advisors, will evaluate any and all offers that we receive,' said Wayne Inouye, CEO of eMachines.

In a written statement the company said that there is no assurance that it will agree to the buy out.

In other new, Inouye said this week that he is considering staying on past his initial one-year contract, which expires in February.

'This has proven to be more interesting than I thought and I am rethinking my decision and may stay at eMachines,' said Inouye, who previously worked at Best Buy and The Good Guys! He replaced eMachines co-founder Stephen Dukker who was ousted by the board of directors when the company fell out of contention in the PC market.

The company has made a small comeback in recent months by getting its inventory issues under control and re-establishing its ties with most of the national consumer electronic, mass merchant and computer superstore chains, Inouye said.