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MAI Rebukes Buyout Release

MAI Systems Corp., a Lake Forest maker of software for hotels and government agencies, engaged in a game of dueling press releases on Tuesday.

The first salvo: a release from Salt Lake City-based Appian Inc. saying it had made an offer to buy MAI Systems in a convertible stock deal.

A couple of hours later, MAI shot back with its own release, rejecting the offer and saying it lacked “any demonstrable financial support.”

MAI declined to comment beyond the release.

Chief Executive Brian Kretzmer, Chief Financial Officer James Dolan and others control 78% of MAI by way of investment company HIS Holding LLC.

In a Securities and Exchange Commission filing, Appian describes itself as a shell corporation seeking acquisitions.

The company is based out of the home of Chief Executive F. Briton McConkie, according to the filing.

At one time, Appian was known as Funnlecloud and sought to develop online shopping malls and later an Internet search engine.

A source familiar with the situation said MAI had received an offer from Appian but it wasn’t what was described in the company’s press release.

“Terms of this proposed offer include issuance and exchange of a $2 convertible preferred share for each common share of MAI Systems,” Appian’s release said.

MAI’s response: “The offer was rejected after Appian was unable to satisfy MAI or its majority shareholder that its offer had any demonstrable financial support that would make it likely that the offer could provide an appropriate value for the MAI shareholders.”

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