Acer shares rise on Gateway merger talk
Shares of Acer, the world's number four PC seller, rose as much as 1.6% today amid market speculation that the company may buy US computer maker Gateway.
An Acer spokesperson had no comment on the speculation.
Gateway shares rose 6.7% overnight and ThinkEquity Partners analysts said in a report that industry sources had indicated Acer may be planning to buy Gateway.
Acer's shares rose as high as 63.20 Taiwanese dollars today, outpacing a 0.4% gain in the benchmark index.
Goldman Sachs analyst Henry King wrote in a research report today that "we remain positive on Acer and believe a possible strong second quarter 2007 performance together with potential M&A or capital reduction should benefit the stock".
King rates the stock at "buy" with a 12-month target price of 70 Taiwanese dollars, up 11% from its current level of 62.90 Taiwanese dollars.