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Taiwan firm to pay $700m for Gateway

Taiwan's leading computer seller Acer is to buy US rival Gateway in a major reshuffle of the world's top computer companies.

Under the deal Acer, which claims the world's third spot in  personal computer shipments, said it would pay about $710m for Gateway.

Gateway is the fourth largest PC company in the US and a leading retail PC provider.

Acer said the merger would create a multi-branded PC company with  more than $15 billion in revenues and shipments in excess of 20 million units per year.