iSOFT appears to confirm takeover talk
- 28 March, 2011 17:33
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.
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.