X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
ORRICK’S $ 710M GATEWAY DEAL HAS OPTIONAL WRINKLE With its recent $710 million purchase of Gateway Inc., Taiwanese personal computer vendor Acer Inc. has staked out sweet spots in America and in Europe with just one hit. Gateway had the rights to buy Europe’s Packard Bell. Buying Gateway gave Acer the option of picking up Packard Bell, which made a straightforward purchase a little more complex for Acer’s lawyers. ORRICK, HERRINGTON & SUTCLIFFE partner Richard Smith said that, along with the cash tender offer for Gateway, he had to negotiate provisions for the eventual purchase of Packard Bell. “Our agreement says that Acer will pay for Packard Bell, but it will be purchased by Gateway,” Smith said, adding that the price for Packard Bell remains to be set. A provision of the Gateway buy is that the Packard Bell deal be closed as soon as possible, he said. “It’s very unusual,” Smith said, “because this is an unrelated party to the two companies.” By swooping in to buy Gateway, Acer elbowed out China’s Lenovo, the No. 3 PC maker in the world, which had also sought to buy Packard Bell. But Gateway had the right of first refusal, Smith said. Under the terms of the deal, Acer will launch a cash tender offer for all outstanding shares of Gateway for $1.90 per share, according to Acer’s SEC filings. Smith, who co-chairs Orrick’s mergers and acquisitions practice, was lead partner on the deal. Also working on the deal were San Francisco partners Barbara Lange, John Cook, James Black, James Telfer, and Steven Malvey; Silicon Valley partners David Lee and Kai Tseng; Silicon Valley of counsel Michael Heafey; San Francisco associates Juliano Banuelos, Scot Strube, Alexis Marraud des Grottes, Virginia Pearcy and Eric Wall; Silicon Valley associate Adam Lin; and attorneys in Seattle, New York and Washington, D.C. Gateway was represented by SKADDEN, ARPS, SLATE, MEAGHER & FLOM Los Angeles partners Brian McCarthy, David Eisman, Michael Lawson and Moshe Kushman; Palo Alto partners Alec Chang and David Hansen; Los Angeles counsel Michelle Gasaway and Garrison DeLee; San Francisco counsel Jane Kroesche; and Los Angeles associates Joshua Schneiderman, Nathaniel Jackson, Williana Chang, Brett Willis, Bertrand Pan, Emily Ma and Micah Katz.

Petra Pasternak

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at customercare@alm.com

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2018 ALM Media Properties, LLC. All Rights Reserved.