PESCH SEES SHAREHOLDER SUPPORT IN AMI <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.