GE takeover of IDX gets go-ahead
9 November 2005
The $1.3bn takeover of US healthcare information technology company IDX
by GE Healthcare has been given the go-ahead by US antitrust authorities,
according to Reuters.
A group of IDX shareholders, however, has served the company with a
purported shareholder class action lawsuit against IDX and certain of its
officers and directors. The complaint was filed on October 24, 2005 in
Vermont Superior Court, Chittenden County, and challenges the price of and
the process leading to IDX’s previously announced merger agreement with
General Electric Company and a GE subsidiary.
“We believe the allegations are without merit. We adhered to a
comprehensive and rigorous review of strategic alternatives and firmly
believe that the transaction with GE is in the best interests of IDX and its
shareholders. This type of legal action is not uncommon and we intend to
vigorously defend ourselves. We have no reason to believe that this lawsuit
will affect the close of the transaction,” said James H. Crook, Jr., Chief
Executive Officer of IDX.