Article: DAMON CORP. REJECTS $265 MILLION BID

Damon Corp., a Needham company that operates a national network of clinical laboratories, yesterday rejected a $265 million offer for the firm.

In a letter to Ballantrae Partners L.P. of New York and American Magnetics Corp. of Sherman Oaks, Calif., Damon called the bid inadequate but offered to let the companies look at Damon's confidential financial books if they sign a standard confidentiality agreement.

That agreement would include a standstill clause that would prevent Ballantrae and American Magnetics from buying any more stock in Damon, conducting a proxy contest or making a tender offer. They would, however, still be able to negotiate with Damon's board.

Ballantrae had no ...

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