iSoft considering legal action after CSC bid block

iSoft bosses have already visited solicitors for advice after US software supplier CSC attempted to block its sale to Australian firm IBA.

A £233 million deal was agreed between the NHS contractor and IBA, but under a change of control clause, CSC effectively has a blocking vote on a sale, as it is an iSoft partner.

Yet both iSoft and IBA have been told that they may have grounds to claim for unreasonable withholding or delaying of consent to the bid.

John Weston, chairman and acting chief executive of iSoft, said: "We are seeking urgent clarification from CSC regarding the reasons for the recent changes in their position and are initiating proceedings to ensure that consent is not unlawfully withheld."

Gary Cohen, executive chairman of IBA, added: "Both IBA and iSoft are seeking urgent further discussions with CSC to resolve any issues and concerns that CSC may have, so that CSC can consent to the merger.

"IBA and iSoft have also been advised that there is a reasonable basis for arguing that CSC has unreasonably withheld and/or delayed its consent. Both IBA and iSoft are considering their rights and what further action to take in the light of this advice."

Any businesses in Northern Ireland that are experiencing similar frustrations regarding acquisitions should visit their solicitor to see whether they have a case.

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