Prime Computer Down $2 Amid Fresh Speculation

Prime Computer’s stock slipped $2 a share in active trading Wednesday amid speculation that MAI Basic Four of Tustin may have backed off its attempt to take over the computer company.

Wall Street traders told the Dow Jones News Service that some traders considered MAI’s statement equivocal when it said earlier this week that it was “evaluating all aspects” of the takeover.

MAI said Wednesday that it was still pursuing a takeover and would not speculate on why Prime stock is dropping.

Executives at Prime could not be reached Wednesday.

Prime stock fell to $15.75 a share on the New York Stock Exchange Wednesday as 1.6 million shares changed hands.

The latest flap in this long-running takeover battle started on Monday, when a federal judge in Massachusetts lifted an injunction that had blocked MAI’s offer of $20 a share.

The same day, Prime dared MAI to buy it, saying it doubted MAI could raise the $1.3 billion needed. Prime, a Natick, Mass., maker of minicomputers, said it would drop its “poison pill” defense if MAI could raise that amount.

MAI then said it was “evaluating all aspects” of its offer in light of Prime’s statement that it was projecting lower sales and operating income for this year and 1990.

Prime stock, which had been trading through much of the takeover battle at prices just below $20, started skidding this week when traders interpreted MAI’s response to Prime’s dare as lukewarm.

The traders told Dow Jones there was speculation that MAI, which makes computers too, might withdraw its offer or lower the price.