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What: Shares of health-care information technology company Allscripts Healthcare Solutions (NASDAQ:MDRX) are diving once again, down as much as 14%, after details emerged that a deal to auction the company off may still be far off.
So what: A report from Reuters earlier today indicates that Blackstone Group (NYSE:BX) has emerged as the front-runner in bidding for Allscripts. However, Blackstone is skeptical that a deal will get done given the high premium that Allscripts is seeking. Both Carlyle Group (NASDAQ:CG) and TPG Capital Management have also been interested bidders in the company.
Now what: I don't mean to blatantly say "I told you so," but I definitely did tell everyone so back in September, when Allscripts rallied in a big way after announcing that it would be seeking a buyer. It was very clear back then, considering its shrinking sales and rising development costs, that the company was in serious trouble. A sale is really the last option management sees to try to generate value -- that's bad news, and all the more reason to avoid this company at all costs.
Craving more input? Start by adding Allscripts Healthcare Solutions to your free and personalized Watchlist so you can keep up on the latest news with the company.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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