Wednesday, 22 August 2007


I must admit that I thought the battle for Isoft was over when CompuGroup offered 66p in cash; trumping the 57p Ozzie-share deal by IBA. Clearly, CSC was much happier with the CompuGroup deal as they got their hands on the Lorenzo software they needed for the NHS IT Project. Indeed, yesterday CSC said they would NOT be making an offer themselves ahead of Isoft's AGM on 31st Aug which was expected to confirm the CompuGroup bid. Indeed, they needed resolution as their banking facilities were running out too.

Now IBA have come back with a 69p cash offer. In addition, IBA have bought 24% (the max. allowed) Isoft shares in the open market. This could well scupper the CompuGroup bid.

Followers of my blog on the Microgen/Trace bid might be feeling a strange sense of familiarity here! IBA should remember that shareholders can and do accept lower offers. The key to all of this now will be CSC. Remember they briefly blocked IBA's first bid. Methinks they would be much happier with the CompuGroup deal but IBA's Chairman, Gary Cohen, reckons that CSC's eventual agreement to IBA's first bid still stands now.

Anyway, who would have thought just a few months ago that people would be fighting so hard to acquire Isoft? A company still under investigation for its accounting methods. Beleagued shareholders must now believe there is a God in Heaven afterall.

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