MAI Basic Four, Inc. v. Prime Computer, Inc.
United States Court of Appeals for the First Circuit
871 F.2d 212 (1989)
Relevant factsFree
MAI Basic Four, Inc. (MAI) (defendant), assisted in its tender offer for Prime Computer, Inc. (Prime) (plaintiff) stock by underwriter Drexel Burnham Lambert, Inc. - which itself held an interest in MAI - faced a challenge from Prime arguing Drexel's financial ties to MAI made it a bidder in its own right, subject to the disclosure requirements imposed on tender-offer bidders; the district court agreed with Prime, and MAI appealed.
IssueFree
Whether, in the event of a difficult decision regarding financial disclosure in a tender offer, courts should allow the disclosure in question to protect shareholders.