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iSOFT appears to confirm takeover talk

iSOFT appears to confirm takeover talk

Health IT company iSOFT (ASX:ISF) has extended its trading halt into a full suspension, and may have tacitly confirmed speculation in had received a buyout offer.

The company entered a trading halt on Thursday while it prepared an announcement over its business restructuring.

Shares in iSOFT grew 20% before the halt took effect, from rumours it had received a takeover offer.

On Monday, iSOFT requested and was granted a voluntary suspension from trading, stating that its strategic review was not at an advanced enough stage to disclose.

This included matters “relating to a potential change of control,” the company said in its request to the ASX, which appears to be an acknowledgment that a deal is on the table.

iSOFT added that it had asked for the trading halt in order to prevent trading taking place in a speculative or uninformed market.

The company swung to a $381.9m loss in FY10, and to an $84.1 million loss in 1H11. It has also shaved its revenue forecast for the full year.

But as part of its strategic review, iSOFT had planned to achieve annualised cost savings of $50 million by June.

ISF shares last traded at $0.052. The shares hit a six-month low of below $0.040 in mid-March, from $0.120 at the beginning of October.

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Tags SuspensionASX:ISFe-healthiSOFTMergers and acquisitions

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