P. M. BRIEFING : Whitney Cuts Prime Computer Bid
<i> From Times wire service</i> s
BOSTON —
J. H. Whitney & Co., under pressure from its bankers, today cut its bid for Prime Computer Inc. by $74 million to $1.18 billion.
The New York venture capital firm said it will pay $20 a share for the outstanding common stock of Natick-based Prime, down from its previous offer of $21.50 a share.
After Prime reported a $19-million quarterly loss last week, Whitney came under pressure from its main financing sources--Bank of Boston and Chemical Bank--to line up additional funds to ensure that it could ride out a period of continued losses.
Whitney said Thursday that it had been unable to obtain the additional financing at $21.50 per share and was entering negotiations with Prime to reduce the offer.
