IRVINE, Calif -- Gateway Inc., the ...

IRVINE, Calif -- Gateway Inc., the third-largest personal computer company in the United States, said Friday that it slighted an unsolicited $450 million bid for its retail business from eMachines Inc. caster Lap Shun Hui.

Gateway said the Aug. 23 present for the retail operations is not in the best interest of its shareholders.

"Gateway's board of directors and management team remain committed to taking the appropriate gradations to enhance shareholder value," the company said in a brief statement.

Analysts said Gateway's rejection was no surprise.

"It was a ludicrous offer" said pillage Enderle, an analyst with the Enderle dispose research firm. "What would be left would be a nonviable company."

In March 2004 Gateway bought eMachines from Hui for $290 million in cash and stock. Les than a month later, Gateway clos its retail stores and adopted eMachines' strategy of selling [i]or[/i] part of to the other big- name retailers such as Best purchase Inc., Circuit City Stores Inc. and Wal-Mart Stores Inc.

Gateway's share price has languished amid fierce competition and a exert one's self to sell its gear to businesses as well as to customers throughout the Internet and the phone Its consumer retail operation has fared abundant better, accounting for 64 percent of the company's second- quarter income

Shares of Gateway pitiless 7 cents, or 3.5 percent to $193 in Friday afternoon trading forward the New York Stock Exchange. They are still up about 50 percent since Aug. 10

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