PESCH SEES SHAREHOLDER SUPPORT IN AMI &lt;AMI> BID

  Chicago physician LeRoy Pesch said he
  has had discussions with several American Medical International
  Inc shareholders and sees support for a restructuring of the
  company.
      Pesch said he has discussed his sweetened, 1.91 billion dlr
  takeover bid for American Medical with several large
  shareholders, including the biggest investor, the Bass family
  of Texas. However, the Bass family has not indicated support
  one way or the other for his offer, he said.
      Pesch, in an interview with Reuters, said based on the
  conversations he held with shareholders, he could not guage
  whether he had majority support. He said, however, there is
  support for his offer.
      Pesch would not identify shareholders with whom he held
  discussions other than the Bass family and the Wedge Group Inc,
  the only other holder of more than five pct of American Medical
  stock.
      Earlier today, Wedge Group, which has a 5.5 pct stake, 
  said it held discussions with Pesch, American Medical
  management and other American Medical shareholders.
      Wedge, in a filing with the Securities and Exchange
  Commission, said it believes a restructuring of American
  Medical and its business would be "highly desirable and
  appropriate at this time."
      "That's the sort of position that I find a large segment of
  shareholders of AMI really share," said Pesch.
      Pesch said he held discussions with Wedge about joining his
  takeover effort, in which he is offering 17 dlrs cash, four
  dlrs in preferred stock and one dlr in common stock for each
  American Medical share. Wedge said it has no plans to join in
  an effort to seek control of American Medical, but it would not
  rule out a future takeover try.
      Pesch said he did not discuss a joint takeover proposal
  with the Bass family.
      Some analysts saw the Wedge statement as a boost to Pesch's
  takeover effort and a further sign that there could be some
  shareholder dissatisfaction following American Medical's
  previous rejection of a 20 dlr per share all cash offer from
  Pesch.
      American Medical is expected to resist Pesch's latest bid.
  Larry Feinberg, an analyst with Dean Witter Reynolds Inc said a
  management-led leveraged buyout cannot be ruled out.
      An American Medical spokesman said the company will comment
  on the new Pesch offer by March 10.
      Analysts continue to view the Bass family as a factor in
  the outcome of the bid for control of American Medical.
      The Bass family holds an 11. 6 pct stake in American
  Medical, and the company has previously said the investors
  support management's internal plan to improve the company's
  performance. The Bass family would not comment on American
  Medical or Pesch.
      Pesch, who led the leveraged buyout of Republic Health Corp
  last year, continues to face a credibilty problem on Wall
  Street because of the long time it took to finish the Republic
  acquisition.
      Republic also has substantial debt, and has left wall
  street questioning whether financing can be completed for the
  much larger American Medical takeover proposal.
      Pesch's first offer for American Medical was made without
  an investment banking firm, another cause for concern to Wall
  Street. However, Pesch entered his second offer with
  representation from Donaldson, Lufkin, and Jenrette Securities
  and Security Pacific Merchant Banking Group.
      "I don't have any doubt that the current transaction can be
  worked out and completed, provided we get to the point where
  Ami management will sit down and talk in a friendly
  environment," Pesch said.
      Pesch would not elaborate on what type of financing
  arrangements are being made. He did say if he succeeds in
  acquiring American Medical he plans to keep much of American
  Medical management in place.
      He said he plans to combine the company with Republic to
  form an efficient network of hospitals.
      Analysts said they do not believe a much higher offer could
  be made for American Medical.
      Byron Nimocks of E.F. Hutton Group said improved second
  fiscal quarter earnings could make American Medical stock worth
  about 20 dlrs per share.
      Nimocks estimates American Medical earnings for the second
  quarter ended February 28 could be 35 cts, compared to a 95 ct
  loss last year.
      Nimocks said Pesch's revised offer is not worth much more
  than the 20 dlrs cash offered previously.
      But Feinberg said there is a better chance a transaction
  could be completed because of the revised structure of the
  offer. "I think it's much more doable," he said.
      Analysts have said American Medical has begun a turnaround
  by replacing some members of management and reducing costs.
  

