Applied Magnetics Corp

Applied Magnetics Corp. said it has filed for Chapter 11 bankruptcy protection and has discontinued operations at its facility in Goleta, Calif., where the company is based.

Applied Magnetics Corp. said it has filed for Chapter 11 bankruptcy protection and has discontinued operations at its facility in Goleta, Calif., where the company is based.

Applied Magnetics Corp. sent an open letter to its shareholders to explain its $1.31-billion hostile takeover offer for larger rival Read-Rite Corp. In the letter, Chief Executive Craig Crisman said the Goleta company became convinced a merger would benefit both companies and that Applied made its bid only after Milpitas-based Read-Rite declined other transactions. Read-Rite's board has rejected the proposal and adopted a "poison pill" plan to thwart it and any other hostile bids.

Applied Magnetics Corp., a maker of computer disk-drive parts, agreed to buy closely held DAS Devices Inc. to gain its semiconductor technology. Applied Magnetics said it will pay 13 million of its common shares for Milpitas-based DAS Devices, valuing the transaction at $90.2 million, based on the closing price of Applied Magnetics shares Tuesday of $6.94. Goleta-based Applied Magnetics makes heads that read computer disk drives. Applied Magnetics shares rose 69 cents to close at $7.

Applied Magnetics Corp.'s stock fell 16%, further cutting the value of its offer for rival Read-Rite Corp. and placing the bid in jeopardy, analysts said. Applied Magnetics shares fell $7.25 to close at $38 on the New York Stock Exchange. Based on Thursday's share price, its offer for Read-Rite is worth $1.22 billion, $580 million less than when the offer was made Monday. Analysts questioned whether Goleta-based Applied Magnetics will go through with the bid, now worth $25.80 a share.

Read-Rite Corp. said its board of directors met Tuesday and that the company was still considering an unsolicited $1.5-billion takeover bid from Applied Magnetics Corp., a rival manufacturer of computer disk drive parts. "The board is pursuing their fiduciary responsibilities and reviewing the proposal with the best interests of Read-Rite shareholders in mind," said Steve Polcyn, spokesman for Read-Rite.

Applied Magnetics Corp. said Friday that it won't raise its $1.23-billion hostile offer for larger rival Read-Rite Corp. That could kill the transaction, because many Read-Rite shareholders are likely to reject the current terms of the stock-swap offer as too low, analysts said. "It probably means there's no deal," said analyst Barry Bosak of Smith Barney. Applied Magnetics, based in Goleta, Calif., is hoping that its stock price will increase, boosting the value of the deal.

Applied Magnetics Corp. made an unsolicited $1.76-billion stock bid for rival Read-Rite Corp. in a deal that would create one of the world's largest makers of heads for computer disk drives. Applied Magnetics, with about 900 employees, is far smaller than Read-Rite, which has about 20,000 workers. But Read-Rite has struggled in recent quarters and recorded a loss of $43 million for 1996.

Read-Rite Corp. said Monday it rejected an unsolicited takeover bid from Applied Magnetics Corp., a rival maker of computer disk drive parts, after the stock offer's value plunged from $1.76 billion to $1.22 billion. The companies both make computer disk drive heads, which read and write information on computer storage devices. The combined companies would have $1.8 billion in annual sales and equity worth $3.4 billion.

Goleta-based Applied Magnetics Corp. gave CEO Ben J. Newitt the additional title of vice chairman. Succeeding him as president is William R. Anderson, whose previous post was executive vice president and chief operating officer. Harold R. Frank continues as chairman. O. M. Fundingsland was promoted to executive vice president-sales and marketing of Applied Magnetics, which manufactures magnetic recording heads for the computer industry.

Applied Magnetics Corp. sent an open letter to its shareholders to explain its $1.31-billion hostile takeover offer for larger rival Read-Rite Corp. In the letter, Chief Executive Craig Crisman said the Goleta company became convinced a merger would benefit both companies and that Applied made its bid only after Milpitas-based Read-Rite declined other transactions. Read-Rite's board has rejected the proposal and adopted a "poison pill" plan to thwart it and any other hostile bids.

Applied Magnetics Corp. said Friday that it won't raise its $1.23-billion hostile offer for larger rival Read-Rite Corp. That could kill the transaction, because many Read-Rite shareholders are likely to reject the current terms of the stock-swap offer as too low, analysts said. "It probably means there's no deal," said analyst Barry Bosak of Smith Barney. Applied Magnetics, based in Goleta, Calif., is hoping that its stock price will increase, boosting the value of the deal.

Read-Rite Corp. on Tuesday said its board approved a shareholder rights plan aimed at thwarting hostile takeover attempts such as the $1.28-billion offer it rejected from Applied Magnetics Corp. Read-Rite on Monday rebuffed rival computer disk-drive-components maker Applied Magnetics, saying it was more beneficial for Read-Rite to remain independent.

Read-Rite Corp. said Monday it rejected an unsolicited takeover bid from Applied Magnetics Corp., a rival maker of computer disk drive parts, after the stock offer's value plunged from $1.76 billion to $1.22 billion. The companies both make computer disk drive heads, which read and write information on computer storage devices. The combined companies would have $1.8 billion in annual sales and equity worth $3.4 billion.

Applied Magnetics Corp.'s stock fell 16%, further cutting the value of its offer for rival Read-Rite Corp. and placing the bid in jeopardy, analysts said. Applied Magnetics shares fell $7.25 to close at $38 on the New York Stock Exchange. Based on Thursday's share price, its offer for Read-Rite is worth $1.22 billion, $580 million less than when the offer was made Monday. Analysts questioned whether Goleta-based Applied Magnetics will go through with the bid, now worth $25.80 a share.

Read-Rite Corp. said its board of directors met Tuesday and that the company was still considering an unsolicited $1.5-billion takeover bid from Applied Magnetics Corp., a rival manufacturer of computer disk drive parts. "The board is pursuing their fiduciary responsibilities and reviewing the proposal with the best interests of Read-Rite shareholders in mind," said Steve Polcyn, spokesman for Read-Rite.

NPC Holding, a subsidiary of Japan's Nakamichi Corp., said Wednesday that it has agreed to acquire a producer of optical disk-drive components in Monument, Colo., for an undisclosed price. NPC, which owns optical disk-drive maker Most Inc. in Cypress, said it plans to acquire the Optical Products Division of Applied Magnetics Corp., which has about 50 employees in Colorado. Most Inc. employs about 500 people in Cypress, said Kim Frank, general counsel for NPC.

Companies ranked by loss from continuing operations. Rank. Company: '93 Income ($ Millions) 1. Amdahl Corp.: -589 2. Tandem Computers Inc.: -510 3. Conner Peripherals: -445 4. Maxtor Corp.: -273 5. California Federal Bank: -146 6. H.F. Ahmanson & Co.: -138 7. Glendale Federal Bank: -112 8. Carter Hawley Hale: -96 9. Hexcel Corp.: -86 10. Gensia Pharmaceuticals: -63 11. REXON Inc.: -53 12. Applied Magnetics Corp.: -52 13. Presley Co.: -51 14. AST Research Inc.: -50 15. Atari Corp.: -49 16.

Applied Magnetics Corp. made an unsolicited $1.76-billion stock bid for rival Read-Rite Corp. in a deal that would create one of the world's largest makers of heads for computer disk drives. Applied Magnetics, with about 900 employees, is far smaller than Read-Rite, which has about 20,000 workers. But Read-Rite has struggled in recent quarters and recorded a loss of $43 million for 1996.

Companies ranked by loss from continuing operations. Rank. Company: '93 Income ($ Millions) 1. Amdahl Corp.: -589 2. Tandem Computers Inc.: -510 3. Conner Peripherals: -445 4. Maxtor Corp.: -273 5. California Federal Bank: -146 6. H.F. Ahmanson & Co.: -138 7. Glendale Federal Bank: -112 8. Carter Hawley Hale: -96 9. Hexcel Corp.: -86 10. Gensia Pharmaceuticals: -63 11. REXON Inc.: -53 12. Applied Magnetics Corp.: -52 13. Presley Co.: -51 14. AST Research Inc.: -50 15. Atari Corp.: -49 16.