Acer Shares Fall 6.9% on Cost of Acquisition - MOVERS MARKETPLACE By Bloomberg

Aug 29, 08:40 AM

Current Headlines: By Chinmei Sung

Acer shares fell by the daily limit Tuesday on concern that the Taiwan personal computer supplier is overpaying for a $710 million acquisition of Gateway to become the world's third-biggest PC maker. Shares of Acer fell 6.9 percent to close at 59.20 Taiwan dollars, or $1.79, in Taipei, its biggest decline in two weeks.

Acer agreed Monday to pay $1.90 a share for Gateway, 57 percent more than its closing price on Aug. 24.

The acquisition of Gateway, based in Irvine, California, would allow Acer to overtake Lenovo Group of China by adding customers in Europe and the United States.

Acer on Monday reported a 36 percent decline in second-quarter profit after Lenovo won customers. The largest PC makers are Hewlett- Packard and Dell. -

Originally published by Bloomberg News.

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