Since US Robotics Corp withdrew its offer last Friday for Hayes Microcomputer Products Inc, rival Diamond Multimedia Systems Inc has announced an increase in its bid to $128m from $111 million. An amendment to the Diamond offer was filed today with the US Bankruptcy Court in Atlanta, Georgia. The judge has ruled that final arguments must be made next Monday, after which a will be taken after next Monday. In the meantime, all additional representations to the Court must be made before then. The new offer was not related in any way to the retreat of US Robotics. Rather, it was a direct result of objections put forward by one of the shareholders, believed to be Hayes, founder, Denis Hayes, that the earlier plan was discriminatory between the shareholders – and since Denis Hayes’ ex-wife Melita is backing the Diamond bid, it seems likely that she was the supposed beneficiary. The proportion of cash and stock offered was then changed to ensure that shareholders would not be discriminated against. The restructuring also rendered the bid tax-exempt.
