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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