Prime Computer gained breathing room Tuesday in its effort to stave off an unfriendly takeover by MAI Basic Four when a Delaware court denied a motion to force Prime to hold its annual shareholders meeting today. In a separate development, Prime disclosed in a court document that "prospects for a better bid" than Tustin-based MAI's latest $1.1-billion offer "are in fact substantial."
Prime, a minicomputer maker based in Natick, Mass., said in a filing in Delaware Chancery Court that it is discussing a possible acquisition of Prime with "several Fortune 500-sized companies and two well-established leveraged-buyout firms."
Prime had previously disclosed that it was talking with third parties, but before the filing in Delaware had not described the parties in detail.
Rescheduled to July 26
MAI had asked the Delaware court to force Prime to hold its annual meeting today, as previously scheduled, but Prime rescheduled it to July 26. Prime said it needed more time to study a new bid announced by MAI on June 1.