A chastened J H Whitney Co yesterday said that while it was extending its $21.50 cash tender offer for up to 49.5m Prime Computer Inc shares to August 8, it did not think it would be able to secure the financing it needs for the bid at that price. It therefore wants to persuade Prime to recommend a new offer at a lower price. Whitney had all the cash it needed until Prime came out with its mid-term figures, which sent the banks funding the bid into a panic: they said that they would withdraw their support unless Whitney raised additional finance. The setback for Whitney puts MAI Basic Four Inc, which now says it will pay $525m cash for Prime’s minicomputer business alone, in a much stronger position (CI No 1,232). Even with Whitney bidding $21.50, MAI argued that if Prime distributed the $525m to shareholders, its offer would top Whitney.
