WEDGE Group Inc, a Houston investmentfirm with a 5.5 pct stake in American Medical International
Inc, said it has had talks with Pesch and Co, which is seeking
control of the company.
    In a filing with the Securities and Exchange Commission,
WEDGE, which is owned by Issam Fares, a Lebanese citizen living
in Switzerland, also said it discussed the possibility of
joining with others in its own bid to seek control of AMI.
    WEDGE stressed that it has no current plans to seek control
of AMI, but refused to rule out a takeover try in the future.
    WEDGE said it has had discussions with AMI management,
Pesch, the closely held health care and investment concern
controlled by Chicago physician LeRoy Pesch, and other AMI
shareholders.
    It did not specify in its SEC filing which issues --
selling its AMI stake or joining with others in a takeover try
-- were discussed with which group. But it said the talks did
not produce any agreements or understandings.
    WEDGE said it believes that "some form of restructuring of
AMI and its business would be highly desirable and appropriate
at this time."
    WEDGE, which holds 4.8 mln shares of AMI common stock, said
it plans to hold further talks with company management, Pesch
and other shareholders.
    Pesch last week sweetened his bid for the company to 22
dlrs a share in cash and securties, or 1.91 billion dlrs based
on AMI's total outstanding, from an all-cash 20 dlr a share
bid, which the company rejected.
 Reuter
