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iBasis shareholders urged to reject KPN's $2.25-per-share tender offer
By Lisa Kerner
Charlotte, N.C., Oct. 15 - iBasis, Inc.'s special committee unanimously determined that Royal KPN NV's revised unsolicited tender offer to acquire the company's outstanding stock for $2.25 per share is "grossly inadequate, opportunistic and not in the best interests" of iBasis' minority stockholders.
"KPN's revised offer still falls well short of reflecting iBasis' current performance and long-term prospects and, accordingly, the special committee recommends that minority stockholders reject the revised offer," W. Frank King, chairman of the special committee, said in a company news release.
"We are disappointed that three months after announcing its intent to commence its hostile tender offer KPN continues to substantially undervalue the company and pursue a coercive takeover strategy."
iBasis said it will keep in place the previously implemented stockholders rights plan.
Minority shareholders Lloyd I. Miller III, Millennium Management LLC and the trustee of the Singer Children's Management Trust have all informed iBasis of their intention to reject KPN's offer.
The Delaware Court of Chancery is expected to hold on hearing on Oct. 28 and Oct. 29 on issues brought forth by both iBasis and KPN regarding KPN's tender offer.
iBasis also filed a complaint in the U.S. District Court for the Southern District of New York against KPN alleging KPN violated federal securities laws in its tender offer for iBasis.
KPN is a telecommunications company based in Amsterdam.
iBasis is a voice carrier and wholesale provider of voice, mobile data and prepaid calling products and services. It is based in Burlington, Mass.
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