October 20, 1995

Amdahl, IBM and BDM Enter Bidding War for Canadian-Based DMR Group

Alan Beck, associate editor
  Fredericton, New Brunswick -- Amdahl, IBM and BDM are engaged in a
fierce bidding war for the purchase of DMR Group Inc., a Canada-based
information technology (IT) provider.


  Employing about 2,800 in North America, Asia and Europe, DMR has
a substantial client list that includes the Atlantic Lottery Corp., the
Canadian Government, GE Aircraft Engines and Paul Revere Life Insurance.
The battle derives not only from DMR's reputation in the marketplace but
also from a unique business opportunity set off through litigation.


  "We feel DMR's global reach would complement our expanding international
commercial IT strategies," said Todd Stottlemyer, BDM's senior vice
president.


  Originally, DMR's three controlling shareholders, Pierre Ducros, Alain
Roy and the Ontario Teachers' Pension Plan Board, simultaneously agreed to
sell to Amdahl. However, BDM challenged the move in court, contending that
the original articles of incorporation, giving the trio almost 80 percent
of the votes through 10-vote class B shares, was invalid in a takeover
environment. The court agreed with BDM, immediately paving the way for
both BDM and IBM to enter the fray.


  "DMR is renown in systems delivery and consulting," noted Michel
Auclair, DMR's executive vice president for corporate services. "We're
strong in Canada and Australia and have access to some very large
clients. The drive to acquire us is not surprising given the need by
major companies to evolve toward providing larger areas of service.


  "With respect to the bidding war, I believe it's still early in the
game. Right at this moment if Amdahl is unwilling to sell its holdings at
$11 per share, I don't think IBM can win. But it's important to
understand that everything is in flux and depends on which companies are
willing to offer what to whom. Conditions and outlooks can and probably
will change dramatically."