With the Boston Federal court injunction standing in the way of MAI Basic Four Inc’s $20-a-share hostile takeover bid for Prime Computer Inc lifted after Judge David Mazzone was satisfied that Prime shareholders had received the necessary information on Drexel Burnham Lambert’s financial state – Prime has turned the tables and gone on the offensive. Sensing that Drexel Burnham Lambert will find great difficulty in raising the $875m MAI still needs to complete its bid. It has agreed to lift the threat of imposing its poison pill of flooding the market with new shares in response to any bid, including MAI’s, pitched at $20 a share cash or above. Prime now believes that the poor market perception of minicomputer business will make it so difficult for Drexels to come up with the readies that it has complied with just about all the Tustin, California company’s demands, gambling that it will get away.
