MAI Basic Four Inc responded to Prime Computer Inc’s Monday announcement by saying that it is highly sceptical that Prime is holding any meaningful discussions with third parties interested in acquiring the company, and as for Prime’s consideration of a recapitalisation plan that would enable it to distribute cash to shareholders, MAI said that if Prime’s directors were seriously seeking to maximise shareholder values, it believes they would hold discussions with MAI as well; taking into account the paper element for all but the primary Prime shares outstanding, observers value MAI’s new bid, nominally $19.50 a share, at about $18 a share fully diluted; as for Prime’s consideration of a recapitalisation plan, it is a complete counsel of despair, and would have little merit over the MAI acquisition – either way the company would be saddled with an onerous debt burden that would virtually preclude future success in a cash-rapacious business like computers.
