Gateway insists it's not for sale

NEWS PC maker Gateway has dismissed suggestions that it is up for sale. For some time, analysts have suggested that Gateway might be prime takeover material. The latest speculation that the company might be on the block came up this week when BusinessWeek reported rumours that a leveraged buyout firm might be interested in purchasing Gateway for $5 a share. However, Gateway CEO Ted Waitt, who owns 31 per cent of the company, issued a statement saying he has no interest in selling. A spokesman for Gateway said: "Ted Waitt has said publicly a number of times, including our most recent earnings call, that the company is not for sale. We feel like our current capital structure is the right one." The spokesman would not say whether anyone has approached the company with an offer. Gateway's stock edged up this week, but even with the gains, the company is trading around $3 a share - well below the rumoured $5-per-share offer. Its current valuation is also roughly equal to the approximately $1bn in cash the company has on hand. Ian Fried writes for News.com