Arbinet to offer to buy back shares; interim CEO named

By Lisa Kerner

Charlotte, N.C., June 11 - Arbinet-thexchange, Inc. said its board of directors completed its strategic review process and decided to maximize shareholder value in the near term by returning cash to shareholders through a $15 million stock repurchase plan.

"This stock repurchase reflects our commitment to enhancing shareholder value and our confidence in the strength of Arbinet's cash flows," chairman of the special committee Michael J. Donahue stated in a company news release.

"In addition to providing for a return of capital to shareholders, this capital allocation program has been carefully structured to ensure that we maintain the financial flexibility necessary to invest in Arbinet's business and better position the company for growth."

Along with financial adviser Jefferies & Co., Inc., Arbinet contacted 101 parties, and entered into confidentiality agreements with 42 of them, regarding a potential business combination. No definitive offers were received, however.

Arbinet's board also appointed Robert C. Atkinson, its lead outside director, as chairman of the board and Roger H. Moore as interim chief executive officer following the resignation of J. Curt Hockemeier as president, chief executive officer and a director of the New Brunswick, N.J., electronic market operator company, effective immediately.

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