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The struggle between iBasis Inc. and its parent company Royal KPN NV over KPN’s attempt to acquire 100 percent of iBasis has been stepped up, as the Burlington-based iBasis has brought a federal suit against KPN.
The suit, iBasis’ second legal action against KPN, was filed yesterday in the U.S. District Court for the Southern District of New York against KPN, other KPN entities and certain members of KPN’s management. It alleges KPN has violated federal securities laws. iBasis (Nasdaq: IBAS) is asking the court for an injunction to stop KPN’s unsolicited tender offer to acquire all of the outstanding shares of iBasis common stock. KPN has offered to pay $1.55 per share, an amount iBasis calls “grossly inadequate.”
In the complaint, iBasis says KPN misled the market in connection with its offer, by disseminating “false and misleading” public filings. KPN’s offer is also, iBasis claims, a “fraudulent scheme to drive down the price of iBasis’ stock” in an attempt at getting a cheaper price as KPN tries to take iBasis private.
Earlier this month, iBasis filed a lawsuit against Royal KPN in the state of Delaware’s chancery court saying the company is in breach of its fiduciary duties to iBasis, and that Royal KPN is committing fraud by providing false and misleading information.
KPN made an unsolicited offer to pay $1.55 a share for a 44 percent stake in iBasis’ common stock last month. The company, based in the Netherlands, already had owned a 56.3 share of iBasis stock at the time. However, a special committee of iBasis board members convened July 29 to weigh in on the proposal and unanimously rejected it, calling it opportunistic and potentially damaging to iBasis and its minority shareholders.
Founded in 1996, iBasis is a wholesale provider of voice over Internet phone services. Its customers include KPN, KPN Mobile, Verizon, Vodafone, China Unicom, Skype and Telefonica, among others.
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