Sperry stockholders have offered to sell 58 million shares to Burroughs, company officials said Wednesday, completing the first step toward the $4.8-billion merger of the rival computer makers.
Burroughs' tender offer for 31 million shares of Sperry stock at $76.50 a share expired at midnight Tuesday. On a pro-rated basis, company officials said, Burroughs will pay cash for about 53% of the shares offered and issue debt and securities for the remaining shares.
The merger, which will create the second-largest computer maker after industry leader International Business Machines, is expected to be completed by Aug. 1.
For the interim, Burroughs said it has appointed eight directors to Sperry's board. Sperry officials said that in keeping with the terms of the merger agreement, four members of its board resigned, giving Burroughs a majority on the new 15-member board. Both Sperry's and Burroughs' individual boards of directors will be dissolved following the completion of the merger, and a new board will be appointed.