MAI Basic to post 'significant' loss for third quarter
Article Abstract:
MAI Basic Four Inc reports a large 3rd qtr loss due to $40 million in unusual charges and $6 million in operating losses. The company will not give the exact amount. MAI took a nonrecurring charge of $25 million on its aborted takeover of Prime Computer Inc, including $12.2 million in 2nd qtr deferred charges. The remainder of the unusual charges is a nonrecurring $13 to $15 million slated for a restructuring program that will streamline operations and eliminate 10 percent of MAI's work force. This restructuring is expected to save $25 to $30 million annually, and MAI predicts a profit in the 1st qtr 1990.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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MAI Basic ends bid to take over Prime Computer
Article Abstract:
MAI Basic Four Inc has ended its hostile takeover bid for Prime Computer Inc, but an entity affiliated with MAI's chairman will still try to win control of Prime's board through a proxy fight. MAI allowed its nine-month, $12.2 million dollar fight for Prime to end, but according to MAI, it was not because of lack of financing for its revised offer of $525 million. MAI's decision followed Prime's acceptance of an offer by a friendly suitor, J.H. Whitney & Co. Whitney's lenders backed away from the company's original bid of $1.2 billion for Prime, after Prime posted a 2nd qtr loss of $19 million.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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Brooke plans to make equity investment in MAI Basic Four
Article Abstract:
MAI Basic Four Inc announces Brooke Partners LP will invest $30 million in cash and convert $25 million of preferred stock to restricted common stock, giving Brooke a 51 percent stake in MAI. MAI has reported it expects a 'significant' loss for 3rd qtr 1989 and will not say how much common stock will be issued to Brooke. A rights offering planned for later in 1989 will allow shareholders to keep their equity in MAI. The Brooke-MAI deal is scheduled to close by Sept 15, 1989 and is dependent on MAI amending its credit agreement as well as the approval of MAI shareholders.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
User Contributions:
Comment about this article or add new information about this topic:
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