Reports were circulating in California today that either IBM or Motorola was set to take over direct PC vendor Gateway 2000.
Gateway always refuses to comment on speculation although last year, CEo Ted Waitt eventually admitted that stories of merger talks with Compaq had been true.
Waitt backed off that deal because Compaq refused to give him a board position, it subsequently emerged - but that is unlikely to be the case with IBM.
IBM is keen to enter the direct battle against Dell, and the acquisition of Gateway would allow it to attack without having to suffer from diluting its channels.
The same reason made Gateway attractive to Compaq at the time.
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