Three Cities boosts COHR bid

Independent service organization COHR of Chatsworth, CA, received good news this month when potential buyer Three Cities Funds of New York City increased its offer price for shares of COHR's common stock. Three Cities boosted its bid from $5.38 per share to $6.50 per share.

COHR entered into a merger agreement with Three Cities in December, under which Three Cities bought a 48% interest in COHR at a price of $5.13 per share. A few days later, Three Cities made a bid for COHR's remaining stock at the $5.38 price (SCAN 1/13/99). The deal allowed for a price increase of $1 per share if COHR could settle pending shareholder lawsuits before the Feb. 3 expiration date under terms that would not require COHR to pay more than $3 million net of insurance proceeds.

But Three Cities increased its offer when COHR received a bid from a third party that proposed payment of $7 per share if the third party could complete due diligence and merger negotiations satisfactorily. Although the third party's bid proposed more per share, Three Cities' modified offer gives COHR the advantage of more immediate payment and none of the third party's due diligence requirements. Three Cities' revised bid expires Feb. 24 and is not contingent on COHR's settlement of shareholder suits.