Computer Memories Inc, the Chatsworth, California Winchester disk drive manufacturer that still has about $30m in the bank but virtually no business after it ran down its production to near zero following the success of a patent infringement suit against it which came hard on the heels of IBM ending its OEM contract for 20Mb drives, is still a sought-after shell. And Intel Corp still holds about 17% of its equity, and is keen to see that holding turned into cash. Now Sun Equities Corp, the Far Hills, New Jersey investment firm that has accumulated 8.8% of Computer Memories’ shares, is making Intel an offer it hopes the chipmaker won’t be able to refuse. It is suggesting that it buy 1.23m of the shares held by Intel at $2.40 apiece and take an option on the other 500,000 exercisable at $2.70 a share between March and June next year, in return for a three-year warrant for Intel to buy 175,000 Sun Equities shares at $3 apiece. The deal would immediately give Sun Equities a 20% stake.
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