Computer Firm Confirms Talks About Merger

Computer Automation Inc. Chairman George Pratt confirmed Tuesday that the company is holding “preliminary� merger talks with Everett/Charles Test Equipment Inc. of Pomona.

However, Pratt said in a prepared statement that “it is still too early to know whether any agreement between the companies will result� from the discussions which began in mid-December.

Monday, Everett/Charles chairman Jerry Hudspeth said the two companies had reached a tentative agreement to merge their operations, a move that could end months of financial uncertainity for Computer Automation.

The Irvine-based company, a once high-flying electronics manufacturer, slipped badly several years ago and has amassed losses totaling more than $20 million in the last three years.

Pratt’s statement Tuesday was Computer Automation’s first public acknowledgement of the merger talks which he characterized as “exploratory discussions.� Pratt was unavailable for additional comment Tuesday.

Company counsel Melvin Eelkema confirmed that the merger talks are proceeding. However, Eelkema declined to comment on whether Hudspeth’s contention that a tentative agreement had been reached was premature.

“The company won’t comment on whether Everett/Charles spoke too soon,� Eelkema said.