Former iSOFT CEO files to delay sale

Former iSOFT (ASX:ISF) chief executive, Gary Cohen, has initiated court proceedings that could delay the sale of the company, Oceania Capital (ASX:OCP).

Cohen family company RJL Investments has claimed in a filing that it is due four weeks' prior notice before Oceania subsidiary, Oceania Healthcare Technology Investments, sells around 15 per cent of its 24 per cent stake.

The delay could give Cohen time to secure a better offer than the $0.17 per share bid from US company CSC, which iSOFT has tentatively accepted.

Oceania Capital said it has refuted the claim that it needs to give notice and will “vigorously defend these proceedings.”

The company said it had already agreed to consider a superior offer if one can be made available, but had “received no such proposal from Mr Cohen.”

Cohen resigned as iSOFT CEO in August last year, the month the company posted a swing to a $381.9 million net loss.

He also stepped down as executive chairman in June and as a director in September.

Oceania Capital also said Cohen had been involved in early meetings regarding the offer from CSC, and “was supportive of these discussions.”

OCP and ISF shares stayed flat on Friday at a respective $2.190 and $0.150.

Copyright © 2011 IDG Communications, Inc.

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