Investor Group Seeks to Acquire Cohr

Cohr Inc. of Chatsworth, which maintains equipment and provides group purchasing for hospitals, said an investor group bought 48% of the company for about $15.8 million and will offer to buy the rest of the company for about $18 million within five days. The investor group, advised by Three Cities Research Inc., paid about $5.13 a share to two major investors for the 48% stake. The group said it will offer $5.38 a share for the remaining shares. Cohr’s board has approved the agreement. The firm’s stock jumped $1.22 to close at $5.13 on Nasdaq. The shares have plunged from a peak of nearly $30 in 1996. The deal was announced after the close of trading. The investor group said it may raise its offer by $1 a share if Cohr gets a preliminary court order settling existing shareholder lawsuits within 120 days of the tender offer. Cohr was sued by several shareholders after it had to restate earnings for fiscal 1997 and the first two quarters of 1998 and took a $12.6-million pretax charge in its third quarter ended last December because of accounting mistakes.