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ANAHEIM -- British electronics producer Sanderson Electronics Corp. has boosted its stake in budding computer manufacturer General Automation Inc. from 35% to 49% -- a move warranted by GA's financial position, which has been weakened by two years of severe cutbacks.
Sanderson exercised all but 2% of its common stock warrants in acquiring 2.4 million additional General Automation shares for nearly $1.7 million, or 70 cents a share. The purchase allowed General to convert debt into shareholder equity.
The move follows two years of cost cutting, consolidation of five area facilities and layoffs of 40% of General Automation's Orange County work force. Though the company's cuts have at times...