Investors React Cautiously to Offer for AMI

Investors reacted cautiously Wednesday to the $1.74-billion friendly bid for American Medical International, a large hospital management firm based in Beverly Hills, by a Chicago conglomerate.

American Medical International shares closed unchanged at $19.25 as 1,623,100 shares were traded, making the issue the 13th most active on the New York Stock Exchange.

Analysts said investors were questioning the ability of the firm controlled by Dr. LeRoy A. Pesch to finance his $20-a-share offer for AMI, the nation’s second-largest hospital management firm. Pesch has not disclosed where he plans to get the money.

Peter Dowd, an AMI vice president, said the company is reviewing the offer and will have a response after its board of directors meets, “probably later this week or early next week.” Dowd said AMI is concerned about the “stability” of Pesch’s financing arrangements.

Pesch made the offer Tuesday through his Chicago health care firm, Alpha Health Systems, a unit of Pesch & Co., which has interests in information systems and real estate besides health care. The Pesch company, which owns or manages 90 hospitals, recently acquired Republic Health of Dallas for $406.2 million.

Pesch owns 1 million of AMI’s outstanding 86.9 million shares, a Pesch spokesman said Wednesday. The Bass family of Fort Worth, Tex., controls 11.4% of AMI’s shares and there has been speculation that the Basses were interested in finding a partner to join in a bid for control of the company. A spokesman for the Basses declined Wednesday to say whether they supported Pesch’s offer for the firm, which expires Feb. 17.

AMI manages 95 for-profit hospitals across the country. The company, which had been steadily profitable until last year, reported a loss of $97.3 million on revenue of $3.46 billion for the fiscal year that ended on Aug. 31, 1986.