Home » News » Currently Reading:

Misys Postpones Allscripts Merger Meeting Due to Lehman Brothers Collapse

September 16, 2008 News No Comments

Misys PLC announced this afternoon in London that it will delay its its scheduled September 22 extraordinary general meeting to approve its merger with Allscripts until October 6. Its lead advisor, Lehman Brothers, filed for Chapter 11 bankruptcy protection yesterday, leaving Misys scrambling for the $330 million it needs to pay off existing shareholders of Allscripts under terms of the merger agreement.

The analyst who led the story had this to say earlier today, before the meeting date was changed:

"The major cash outgoing is the $330m dividend to be paid to Allscripts’ shareholders five days after the deal closes (around 1 October). So we imagine Misys has some two weeks to find funding in a tricky (and possibly expensive) market. It is unclear whether the EGM [on 22 September to ratify the deal] can proceed if the facilities are no longer in place, but we would assume so.

"While this must be the worst two weeks of the crunch so far to go shopping for a $305m facility, we assume one is available at some price and as such we imagine the deal should still go through. Certainly Misys must be working overtime to ensure it does. Its own healthcare business was already in sharp decline. It has stopped investing in R&D in its own business and we suspect business has continued to be poor. Quite apart from any break fees (£7.1m), the business would not be in good shape on its own. While we do not believe that will happen, the risk has just increased."

View/Print Text Only View/Print Text Only


HIStalk Featured Sponsors

     







Subscribe to Updates

Search


Loading

Text Ads


Report News and Rumors

No title

Anonymous online form
E-mail
Rumor line: 801.HIT.NEWS

Tweets

Archives

Founding Sponsors


 

Platinum Sponsors


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold Sponsors


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reader Comments

  • HIT Girl: Amazingly, he's the CEO of a patient-payment company. You'd think he'd have bothered to pop the hood on the whole billi...
  • Johnny B: ACP paper - I don't know that providers will ever be able to come to a consensus on how they want to document. Some want...
  • FLPoggio: What this piece totally ignores is that you and the provider (roofer) dealt directly with each other. Now what if you ha...
  • AC: That's not an apt comparison. Imagine instead if while the roofer was doing his thing, another random roofer dropped by ...
  • HIT Girl: I've worked in EHR design & support for the last 14 years or so, and when I was hospitalized in I think 2007 I got m...

Sponsor Quick Links