Computer Sciences Considering Acquisition of iSoft

Computer Sciences Corp. [CSC], a U.S. IT services firm, said it is reviewing its options and won't rule out an acquisition of iSoft PLC, its partner in a project to service a ₤12 billion ($23.94b) U.K. National Health Service [NHS] contract. iSoft said it would not seek legal action against CSC earlier Wednesday, stemming from the latter's recent blocking of a third-party takeover attempt. Australia's IBA Health Ltd. offered ₤140m in an all-share takeover. CSC said if it were to make an offer, it would be in cash. iSoft was down 2.1% in afternoon trading in London. Its shares have fallen nearly 90% due to NHS project related irregularities and weak financial guidance. Shares of CSC were untraded in the pre-market, having closed up 1.1% to $56.96 in normal trading Tuesday.

Sources: MarketWatch, Reuters
Commentary: Covansys, Computer Sciences: IT Outsourcing Merger Update • Raytheon, Computer Sciences Corp. Ink Deal With Army For Up To $11.2B
Stocks/ETFs to watch: Computer Sciences Corp. (CSC), iSoft Group PLC [London: IOT]. Competitors: Accenture Ltd. (ACN), Electronic Data Systems Corp. (EDS). ETFs: PowerShares Dynamic Technology (PTF)

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