PC giant Acer has begun its cash tender offer for all outstanding shares in rival Gateway.

The $710m (£351m) deal agreed at the end of August will create the third largest desktop manufacturer in the world. Acer has agreed to pay $1.90 (£0.94) for each remaining share in Gateway.

The agreement has been met with hostility by some of Gateway's existing shareholders. Documentation filed on August 31 describes the agreed purchase price as "inadequate and unfair " to investors.

Gateway has also announced it plans to sell its professional business segment to hardware corporation MPC. The agreement is expected to be finalised by the end of the year.