• 01 Sep 2006 at 3:07 PM
  • Gateway

Gateway Tells Johnny Hui To Take A Long Walk On A Short Pier

gatewayarches.jpgIt’s not exactly surprising news that Gateway has reacted to Lap Shun “John” Hui’s bear-hug letter with a big ‘eff-you.’ But it took longer than expected for the board of directors to dismiss Hui’s letter, which might be a signal that they actually are in the market for selling off some assets.

Gateway rejects bid for retail unit

  • 23 Aug 2006 at 3:43 PM
  • Gateway

Bear Hugging Gateway

dearrick.jpgThe essential elements of a good bear hug letter are (a) an unsolicited and unexpected demand that a board sell all or part of its business and (b) a demand that they respond to letter in an unreasonably short time. The second point is very important because one of the points of sending a bear hug letter is to make the board jump, to shake them out of their routine. It helps if the letter is a little bit passive-aggressive—nice sounding but subtly condescending.
Lap Shun Hui’s letter to Gateway chairman Richard Snyder has it all. A demand that the board respond within twenty-four hours. A proposal to slice up the company. And to drive home the point, Lap Shun chummily refers to the chairman as “Rick.”
After the jump we give you the full text of the letter.

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