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August 21, 1997updated 01 Sep 2016 6:20pm

FUJITSU UPS AMDAHL OFFER TO PLACATE SHAREHOLDERS

By CBR Staff Writer

Fujitsu Ltd and Amdahl Corp have reached an agreement in principle to resolve stockholder litigation filed when Fujitsu announced its intention to acquire the remaining 58% of its long- time mainframe distributor and technology partner (CI No 3,216). Fujitsu’s non-hostile bid to purchase all outstanding Amdahl shares for $12 each amounted to $850m. The new agreement provides for an increased offer – up from $12 per share to $12.40 – and for additional disclosures to be made available in the tender offer. It values the 58% stake at $878m. Both companies continue to deny any wrong doing during the lead-up to the announcement, but Fujitsu will amend and distribute extra material to Amdahl’s stockholders. It seems unlikely that an extra 40 cents will mollify litigious shareholders who described Fujitsu’s $12 offer as grossly inadequate giving due consideration to the Company’s growth and anticipated operating results, net asset value and profitability.

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