BOEING <BA> STARTS ARGOSYSTEMS <ARGI.O> BID
Boeing co said it has started the 37 dlr
per share tender offer for all shares of ARGOSystems Inc that
it announced yesterday morning.
    In a newspaper advertisement, the company said the offer,
withdrawal rights and proration deadline all expire June 30
unless extended.
    The offer is not conditioned on receipt of any minimum
number of shares, Boeing said.  If at least 90 pct of
ARGOSystems' shares are tendered, it said it will buy all
shares, but if less than 90 pct are tendered, it said it plans
to buy only 49 pct in the offer.
    Boeing said if less than 90 pct of ARGOSystems' shares are
tendered, but the purchase of all shares tendered along with
the exercise of options it holds would give it over 90 pct of
ARGOSystems, Boeing may buy all shares tendered.
    ARGOSystems has granted Boeing an option to buy up to
1,238,311 new shares or a 15.6 pct interest at 37 dlrs each,
and shareholders have granted Boeing an option to purchase up
to 597,885 shares at the same price, or about 8.9 pct of those
now outstanding, without taking the company option into
consideration.  A merger at the tender price that has been
approved by the ARGOSystems board is to follow the offer.
 Reuter
