CSC says an iSoft bid would be all cash

On the same day that iSoft announced it was suspending legal action against Computer Sciences Corporation (CSC), while pursuing approval for its acquisition by Australia’s IBA Health, CSC said that it continued to review its options up to and including a purchase of iSoft.

The Californian technology services company said there was no certainty of it making an offer, but if it did it would be an all cash deal.

iSoft today said that it had suspended legal action against CSC while it seeks to gain approval for its purchase by IBA, a deal approved by the iSoft board.

In a 6 June statement CSC, which is iSoft’s main customer as part of the NHS IT programme, said that its primary objective remained the successful delivery of the NHS National Programme for IT. The company said that it continued 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 stressed that there was no certainty such an offer would be made but did stress that if it was it would be an all cash offer. Australia’s IBA Health £140m offer for iSoft is based on securing borrowing from banks and issuing new shares.

The Californian technology services company made clear, however, that there was no guarantee an offer would be made. “There is no certainty that any offer for iSoft will be made by CSC. 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.”

The CSC statement came in response to the requirements of the UK Panel on Takeovers and Mergers, which has added CSC to its Disclosure Table as a potential offeror for iSoft Group plc.

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iSoft puts legal action against CSC on hold