iSoft has withdrawn its recommendation of the CompuGroup offer in favour of IBA’s latest £166m cash offer, the company confirmed today.
It follows an announcement by Germany’s CompuGroup this morning, that it will not be increasing its cash offer following IBA’s decision to up the bidding war for iSoft last week.
CompuGroup said in an ad hoc announcement: “CompuGroup Holding AG today announces that the company will not increase its cash offer, announced on 20 July 2007, of 66 pence per share for iSoft Group plc.”
iSoft responded with a statement noting CompuGroup’s decision and adding: “IBA’s cash offer represents superior value for iSoft shareholders compared with that of CompuGroup. iSoft has therefore withdrawn its recommendation of the CompuGroup offer and intends to recommend the IBA cash offer and proceed with the steps necessary to implement the revised IBA offer by way of scheme of arrangement.”
Documentation, including details of the opinion of the board of iSoft on the revised IBA offer, will be sent to shareholders in due course, and as a competitive situation no longer exists between IBA and CompuGroup, the auction by the Panel of Takeovers and Mergers will no longer take place.
Gary Cohen, executive chairman of IBA Health, said, “The decision by CompuGroup not to increase their offer means that IBA’s offer at 69 pence is now the best offer on the table for iSoft shareholders… This brings the current competitive situation that has existed to an end. We now look forward to completing our offer over the next few weeks.”
Frank Gotthardt, chairman of the management board at CompuGroup added: “iSoft would have been an excellent complement to our international business activities, but
CompuGroup does not intend to enter into a contest that would lead to prices and risks that are unreasonable. This would not create value for our shareholders.”
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