ComputerLand Offers to Buy Businessland

A resurgent ComputerLand Corp. on Wednesday sought to buy troubled competitor Businessland Inc., making a stock-swap offer only days before the expiration of a stalled bid from JWP Inc.

Businessland, after reviewing ComputerLand’s proposal, said it would continue to urge holders of its stock and bonds to accept JWP’s offer, which expires Friday.

“The board of directors continues to believe that the JWP tender offer and merger are in the best interests of Businessland and its security holders,” Businessland Chairman and Chief Executive David A. Norman said in a statement.

ComputerLand, the nation’s largest computer reseller, said it would issue stock in exchange for Businessland stock at a value of $1 a share. A holder of 20 shares in Businessland would get $20 worth of ComputerLand stock, explained ComputerLand spokesman Alan Bernheimer.

Although now closely held, or owned by a limited number of shareholders, ComputerLand earlier announced its intention to go public.

The offer would give bondholders, at their option, cash or ComputerLand stock in the amount of 45 cents on the dollar, Businessland said.

ComputerLand also said it would be willing to consider a cash purchase of specified Businessland assets and liabilities.

Businessland’s stock closed Wednesday on the New York Stock Exchange at 81 cents, up 6 cents.

ComputerLand’s offer follows its recovery from financial woes during the past year. In contrast, Businessland, formerly the biggest dealer of personal computers to businesses, has suffered a series of losses, laid off workers and closed stores. It said in May that it was thinking about filing for bankruptcy protection from creditors.