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A federal judge in Boston issued an...

A federal judge in Boston issued an injunction Tuesday blocking MAI Basic Four’s $970-million hostile bid for Prime Computer but immediately suspended the order pending an appeal. In a written ruling, U.S. District Judge A. David Mazzone said Tustin-based MAI had violated the federal Securities and Exchange Act and failed to detail its plans for Prime if the takeover succeeds. After oral arguments, Mazzone last Friday said he would issue the injunction and then stay it, and on Tuesday he detailed his reasoning in the written order. Prime, based in Natick, Mass., sued MAI, a computer maker controlled by New York investor Bennett S. LeBow, last month on the ground that its $20-a-share offer failed to make a full disclosure under federal securities regulations. Mazzone’s injunction would halt the bid until the additional disclosures are made, but the injunction is on hold until MAI appeals to the U.S. 1st Circuit Court of Appeals in Boston.


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