iSoft takes legal action against CSC
Kablenet.com
Published: 05 Jun 2007 12:44 BST
iSoft has started legal action over Computer Sciences Corporation's refusal to consent to its acquisition by Australian healthcare provider IBA Health.
It has claimed that Computer Sciences Corporation's (CSC) objections to the takeover are unreasonable, according to a report in The Register.
When the move was announced in early May, it was seen as a boost to the NHS's National Programme for IT (NPfIT), for iSoft is a major contractor and CSC the local service provider for most of the country. But last week's news that the CSC is blocking the takeover has raised fresh doubts about the programme's progress.
iSoft said CSC agreed in writing to consent to the takeover on 20 April, subject to certain conditions. But, by 28 May, CSC had changed its mind and said it would block the rescue package.
In a joint statement from IBA Health and iSoft, the companies said they had been advised that CSC's refusal to consent to the takeover could be considered unreasonable and therefore rejected by a court.
The statement also said: "CSC's wider interests may be influencing its conduct on this matter."
CSC has been considering a takeover bid of its own for iSoft since November 2006. iSoft further claims that CSC has been talking to US private-equity group Gores to help with funding such a takeover.
In late May, CSC approached iSoft's bankers, without telling iSoft, to discuss buying the company's debt.
The statement says: "Against this background, it is with regret that the board of iSoft feels it has no alternative but now to initiate proceedings against CSC to protect the company and its shareholders' position. The objective of these proceedings is to ensure that CSC does not unlawfully withhold consent to a transaction that, in the view of the iSoft board, inter alia, places iSoft in a stronger position to discharge its obligations under NPfIT."
CSC declined to comment.
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