Berlitz Deal Renegotiated

The Japanese publisher that is merging with Berlitz International Inc. has asked to renegotiate the deal because of weak financial results at the language service business, officials said Tuesday.

Fukutake Publishing Co. Ltd. agreed to purchase about 67% of the company in August. News of the merger renegotiation sent Berlitz’s stock sliding $2.625 on the New York Stock Exchange to $19.625

Berlitz on Tuesday released preliminary results for the third quarter of 1992 that show a sharp drop in operating income.

Operating income for the three months ending Sept. 30 was $1.2 million, compared to $5.25 million for the same period last year. Sales for the third quarter of this year were up slightly to $69.6 million from $62.5 million in the third quarter last year.

Robert Minsky, Berlitz’s chief financial officer, said that the two companies are discussing Fukutake’s proposed changes to the merger terms. Minsky refused to comment beyond a prepared statement, which said both companies are seeking to reach new terms by year’s end.

Under terms of the August agreement, Berlitz stockholders would have received $21.62 in cash and 0.165 of a share in new common stock per existing share, plus proceeds from the debt of Maxwell Corp. and its affiliates.