Late last month, Acer inked a deal to aquire U.S. computer maker Gateway for a $710 million; now, two groups of shareholders have filed lawsuits seeking to block the deal, claiming Gateway execs shirked their financial responsibility and should have held out for more money.
The two lawsuits were disclosed Tuesdsay and Wednesday in a pair of SEC filings (here and here). One of the suits was filed on Califoria, where Gateway’s corporate headquarters is located, and the other is filed in Delaware, the state where Gateway is incorporated (for tax purposes). According to Gateway, both lawsuits allege “the Company’s directors breached their fiduciary duties to stockholders by approving the Merger Agreement,” and that Gateway and Acer execs colluded to withhold certain information about the transaction from shareholders, denying shareholder a “fully informed voluntary choice” regarding approving the merger.
Although Gateway has struggled in recent years, it remains a large player in the U.S. computer market, and Acer’s purchase would function both as a way for Acer to better penetrate the North American market and block rival Lenovo’s intentions to purchase Packard Bell to build out its presence in Europe. By way of a previous transaction, Gateway actually has the right of first refusal on any acquisition of Packard Bell; if Acer buys Gateway, they’re not going to let Lenovo have it.
