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iSoft halts legal action against CSC

Kablenet.com

Published: 07 Jun 2007 16:59 BST

Troubled software company iSoft has called a halt to legal proceedings initiated against Computer Sciences Corporation, one of the local service providers for the NHS National Programme for IT, after the latter blocked its takeover by Australian firm IBA Health.

According to The Guardian, the decision to hold off was triggered by a threat from Richard Granger, the NHS director general of IT, who declared he would tear up the companies' contracts and replace suppliers if a swift resolution was not reached.

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NHS Connecting for Health described the report as an exaggeration and suggested that it was a matter for the two companies to sort out. A spokesperson told GC News on Thursday: "We'd obviously like to see a resolution. Our only aim is to protect the public interest."

Last week Computer Sciences Corporation (CSC) announced it had refused to give its consent to the deal, which would have given iSoft a vital cash injection. iSoft claimed that the contractor had backtracked on an earlier decision to approve the takeover, suggesting that CSC's own potential purchase of the company and wider interests were the cause of the U-turn.

In a statement issued on Wednesday, CSC said its "primary objective remains a successful delivery of the NHS National Programme for IT [NPfIT]". Saying it would not rule out an offer for iSoft, it clarified: "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."

iSoft said it is currently discussing with CSC the potential for the contractor to take a greater role in the management of iSoft's work on the NPfIT. The company is also continuing to seek CSC's consent to the IBA offer.