In a statement to the Australian stock exchange, IBA said these discussions could lead to an all-share recommended offer for iSoft being tabled. The company said it is negotiating with certain financial institutions for funding to refinance its debt facilities and provide adequate working capital for the ongoing requirements of the enlarged group.
Following the announcement, shares in iSoft rose over 10% to just under 50 pence in trading on the London stock exchange. IBA’s shares, however, fell by more than 6% to AUD 1.52 on fears that the task of resurrecting iSoft may be too much for the Australian vendor.
iSoft has been in talks with potential suitors since October last year, but has yet to find a suitable buyer. Earlier this week it was reported that a deal with US pharmaceutical distributor McKesson had broken down following disagreements between McKesson and CSC, the IT services vendor responsible for subcontracting work on the UK National Health Service’s IT upgrade to iSoft.
CSC has become increasingly involved in iSoft’s operations since taking over Accenture’s share of the troubled NHS project in September. Reports in the UK press suggest that CSC is vetting all companies with an interest in buying iSoft.
