Computer Firm Confirms Talks About Merger

Computer Automation Inc. Chairman George Pratt confirmed Tuesday that the company is holding “preliminary” merger talks with Everett/Charles Test Equipment Inc. of Pomona.

However, Pratt said in a prepared statement that “it is still too early to know whether any agreement between the companies will result” from the discussions which began in mid-December.

Monday, Everett/Charles chairman Jerry Hudspeth said the two companies had reached a tentative agreement to merge their operations, a move that could end months of financial uncertainity for Computer Automation.

The Irvine-based company, a once high-flying electronics manufacturer, slipped badly several years ago and has amassed losses totaling more than $20 million in the last three years.

Pratt’s statement Tuesday was Computer Automation’s first public acknowledgement of the merger talks which he characterized as “exploratory discussions.” Pratt was unavailable for additional comment Tuesday.

Company counsel Melvin Eelkema confirmed that the merger talks are proceeding. However, Eelkema declined to comment on whether Hudspeth’s contention that a tentative agreement had been reached was premature.

“The company won’t comment on whether Everett/Charles spoke too soon,” Eelkema said.