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Gateway To Acquire Packard Bell Parent

10/09/2007 09:33:00 AM Eastern

Irvine, Calif. — Gateway has delivered a binding offer to acquire PB Holding Co., the parent of computer maker Packard Bell.

The deal, originally signed on Oct. 4, will be funded by Acer Inc. as part of the merger agreement that has Acer acquiring Gateway. The financial details were not released, but the deal is expected to close in late 2007 or early 2008 pending regulatory approval.

The purchase will give Gateway control of all of PB Holding’s shares, 75 percent of which are owned by Lap Shun Hui, who sold eMachines to Gateway in March 2005.

Gateway had a right of first refusal in regards to the PB Holdings’ stock, which it exercised last month in response to a move by Lenovo to acquire PB Holdings.