Bypassing the mercurial Dennis Hayes, blamed by Boca Research Inc for putting the kibosh on Boca’s bid, San Jose, California-based Diamond Multimedia Systems Inc has gone to the unsecured creditors committee of bankrupt Hayes Microcomputer Products Inc, entering into a tentative agreement to acquire Hayes. Diamond agreed to fund a maximum of $85m in undisputed and disputed creditor claims and offered to acquire all the outstanding stock of Hayes for $20m in cash and 1.6m shares of its common stock with total consideration not exceeding $73m in Diamond shares.The deal is subject to negotiation of a definitive agreement, US Bankruptcy Court approval, and several other conditions. It was able to approach the creditors committee because on Monday, the Bankruptcy Court in Atlanta terminated the company’s exclusivity arrangements allowing the unsecured creditors committee and others to file a plan of reorganisation with the court. Fast-growing Diamond, making graphics and multimedia accelerators in San Jose, floated in February and annual sales are running at some $350m.
