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February 8, 1989


By CBR Staff Writer

Prime Computer Inc won a little more breathing space in its grim struggle to escape the debt-laden hostile takeover bid from MAI Basic Four Inc when Federal Judge David Mazzone refused to lift the injunction against MAI Basic Four Inc’s $20-a-share tender, saying that MAI still hadn’t revealed sufficient information about its financing for the bid. This time, he cited continued inadequate disclosures by Drexel Burnham Lambert Inc, MAI’s financial advisor: the judge reckons that Drexels is effectively a co-bidder, and wants the bank to prove that it isn’t. A lawyer for Prime said that Judge Mazzone appeared to be heavily influenced by the fuller disclosure that Drexel had made in a similar case involving Interco Inc. In that case, Judge Mazzone had indicated, Drexel provided information on its financial statements and officers and directors that hasn’t been provided in the Prime case, said the Prime lawyer. No new hearing date was set, and Prime’s lawyer also notes that the Delaware Chancery Court said last week that it would not schedule a hearing on MAI Basic Four’s motion to invalidate Prime’s takeover defences until the injunction against the offer is lifted.

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