Memorex International NV’s tender offer for about 90% of Telex Corp’s equity has triumphed, and yesterday the Netherlands registered, UK-based company reported that the offer closed substantially oversubscribed. It has accepted for payment at $62 – $56 cash and the rest in paper – apiece about 13.3m of the 14.2m shares tendered, on a pro rata basis. In the merger, each Telex shareholder will receive about 10.33 shares of a new issue of cumulative redeemable exchangeable preferred stock of Telex for each Telex common share. The preference shares will have a liquidation preference of $6, will pay dividends at the annual rate of 14% and will be subject to mandatory redemption after 12 years. Dividends on the preferred stock may be paid in additional preferred shares for the first three years. Completion of the merger is subject to the usual conditions. With only paper left to go for, surviving Telex Corp shares slumped $17.50 to $41.
