LeBow Asks Prime to Prove Its Worth

Bennett S. LeBow, who has pursued Prime Computer with a $970-million hostile takeover bid, Thursday challenged the Natick, Mass., company to prove it is worth more and repeated that he might negotiate a higher bid.

LeBow, chairman of Tustin-based MAI Basic Four, said his company would “seriously consider” raising the cash offer if it got information from Prime “that demonstrates that such an increase is warranted.”

The new overture from LeBow was contained in a letter to Prime executives dated Wednesday that offered a confidentiality agreement in return for information about Prime. LeBow released the letter Thursday.

Prime declined to comment on the letter.

The stock market apparently shrugged off LeBow’s latest statement. Prime stock gained 25 cents to close $18.625 a share in trading Thursday. MAI’s buyout offer amounts to $20 a share.

John Adams, an analyst for Adams Harness & Hill in Boston, said LeBow’s offer to go higher had a “Catch-22” in that Prime has all along resisted the deal.