CTS &lt;CTS> AND DYNAMICS &lt;DYA> REACH ACCORD

  CTS Corp and Dynamics Corp of
  America reached an agreement resolving all outstanding
  differences between them, according to a joint statment.
      As a result of the settlement, a special committee of the
  board of directors of CTS stopped soliciting offers to buy all
  or part of the company, it said.
      CTS and DCA also agreed to dismiss all pending litigation
  between the two companies except for one appeal pending before
  the U.S. Supreme Court relating to the Indiana Control Share
  Chapter, it said.
      Under the agreement, the CTS board will immediately be
  reduced to seven from eight with four current directors and
  three representatives of DCA being elected to the board, it
  said. This board will be presented as the slate for CTS' 1987
  annual shareholders meeting, it added.
      CTS' directors will recommend to shareholders that they
  approve reimbursement to DCA of about 2.2 mln dlrs in expenses
  relating to CTS, and grant DCA an option to buy up to 35 pct of
  CTS' shares, it said.
      In addition, DCA said it agreed to limit its ownership in
  CTS for the year following the 1987 annual meeting to not more
  than 35 pct of the outstanding stock. DCA currently holds 27.5
  pct of the outstanding shares of CTS.
      Both companies said they support the agreement and believe
  it to be fair to both sides.
  

