DIXONS SAYS CITICORP TO WITHDRAW CYCLOPS OFFER

  &lt;Dixons Group PLC> said it received a
  letter on March 19 from Citicorp Capital Investors Ltd, part of
  the Cyacq investor group making a rival bid for Cyclops Corp
  &lt;CYL>, proposing to drop the group's offer if Dixons would sell
  Cyclops industrial businesses to Citicorp.
      "Cyacq's main equity investor appears ready to pull out and
  deal directly with us for merely part of the company" said
  Dixons. "It raises questions as to the strength of their
  consortium and the purpose of their offer."
      Dixons also said a U.S. Federal Court had refused a request
  by counsel for Cyacq, Audio/Video Affiliates Inc &lt;AVA> and a
  shareholder plaintiff to prevent Dixons from
  completing its tender offer for Cyclops. It also said the court
  refused to require Cyclops to provide Cyacq with confidential
  information previously provided to Dixons.
      On Friday Cyacq Corp, an investor group led by Audio/Video
  Affiliates and Citicorp, raised their offer for Cyclops to
  92.50 dlrs per share from 80 dlrs per share, if certain
  conditions were satisfied.
      Last week Dixons said it won out over rival bidders for
  Cyclops after getting 54 pct of Cyclop's oustanding with a
  90.25 dlr or 384 mln dlr tender offer that expired March 18.
      On Friday, Dixons agreed to reopen its tender offer until
  March 25, Wednesday.
      Dixons today called Cyacq's higher 92.50 dlr a share offer
  for Cyclops "highly conditional."
  

