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CSC considering rival cash bid for iSoft
LONDON (Reuters) - After a nine-month wait to be rescued, troubled healthcare software firm iSoft suddenly faces the prospect of two offers after its biggest customer, CSC, said it was considering buying it.
ISoft had until Wednesday morning been getting set for a legal showdown with CSC after the Californian firm blocked an offer from Australia's IBA.
CSC, which is charged with overseeing much of the 12 billion pound ($23.94 billion) IT upgrade of Britain's public health service, said it was now also considering an all cash offer for iSoft.
"Computer Sciences Corporation continues to review its options in light of this objective, including its contractual rights and obligations, and does not exclude the possibility of making an offer for iSoft," CSC said in a statement,
"Should such an offer be made, any consideration is likely to be solely in the form of cash and will not include any CSC publicly listed securities," it added.
CSC had been looking to team up with U.S. private equity fund Gores in an offer for iSoft, its software provider on the much maligned project, but no offer materialized. CSC did not say whether Gores would be part of any offer it now made.
If CSC did make a bid, it would rival an already-agreed all-share offer from Australia's IBA, which valued iSoft at roughly 138 million pounds.
The move comes just two days after iSoft started legal proceedings against CSC following the U.S. firm's refusal to back the IBA deal. CSC's blessing is a must for any takeover of iSoft.
ISoft, which is also under investigation by regulators over financial irregularities related to the NHS project, had accused CSC of illegitimately blocking the deal and going behind its back in talks with its debtors.
It said early Wednesday that following talks with CSC it had decided to hold off on the action.
"While these discussions are in progress, iSoft and CSC have agreed temporarily not to take further steps in court in relation to proceedings commenced on 4 June 2007 in relation to CSC withholding its consent," iSoft said in a statement.
Shares in iSoft, which lost almost 90 percent of their value on the back of NHS-related problems and profit warnings, were down 1 percent by 0920 GMT valuing it at around 110 million pounds.
