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Telex Warns Suitor of Possible Recapitalization

November 06, 1987|From Reuters

NEW YORK — Telex Corp. on Thursday fired a volley at Asher B. Edelman's $876-million takeover offer, warning the financier that it will carry out a recapitalization if his offer is not completed promptly.

The computer company, which has been trying to avoid Edelman's unsolicited takeover, said it would pay shareholders a special $775-million dividend unless the Edelman takeover goes through. Companies usually announce recapitalization plans, which take on heavy debt, to ward off unwelcome suitors. The move left financial analysts a little uncertain about the Telex strategy.

Corey Horowitz, a partner in Edelman's group, said the recapitalization plan came as a surprise.

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