Prime Computer to Appeal Takeover Ruling

Prime Computer Inc. said Friday that it will appeal a federal judge’s decision allowing MAI Basic Four Inc. of Tustin to proceed with its $1.3-billion hostile takeover bid for Prime once it makes additional financial disclosures.

On Tuesday, a federal judge in Boston refused to grant an injunction that would have barred MAI’s bid on grounds that the $20-per-share tender offer violated federal margin rules limiting the amount of stock that can be pledged as collateral in a takeover.

Prime, a Natick, Mass., minicomputer maker, on Friday asked the U.S. 1st Circuit Court of Appeals for an expedited hearing on the margin issue.

In a prepared statement, MAI Chairman Bennett S. LeBow said the Orange County computer firm will “vigorously oppose” Prime’s appeal “and any other effort by Prime to avoid or delay the prompt sale of Prime.”

Apart from that appeal, MAI’s offer remains blocked by the federal district court until 10 days after MAI’s investment banker, Drexel Burnham Lambert, supplies 1988 financial information to Prime shareholders.

Judge A. David Mazzone has ruled that Drexel is a “co-bidder” in MAI’s tender offer and must therefore provide detailed financial information to Prime.