Monday, November 23, 2009

IBasis strikes deal with KPN on stock dispute

By Mass High Tech Staff

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The five-month dispute between iBasis Inc. stockholders and KPN BV over majority owner KPN’s bid to acquire all remaining iBasis stock took a step toward resolution with the two companies announcing that KPN will increase its offer from $1.55 to $3 per share.

In the joint announcement, iBasis and KPN, which had held a 56.3 percent share in iBasis prior to its July bid for the rest of the company, said that the iBasis board will recommend to stockholders that they accept the $3 cash offer, which the companies said is KPN’s last and final offer. The companies also said that iBasis agreed to dismiss two suits against KPN that iBasis filed in the Delaware Court of Chancery and in a New York federal court. Shares in iBasis, which had stood at $1.30 when KPN made its original offer, closed at $2.26 on Friday. If stockholders accept the $3 offer the purchase price for the remaining 44 percent of stock would be $93.3 million.

Burlington-based iBasis, founded in 1996, is a wholesale carrier of international long distance telephone calls and a provider of retail prepaid calling services and enhanced services for mobile operators. KPN, based in The Hague, has been one of iBasis’ regular customers.

In the joint statement, the companies said that KPN’s acquisition of the remaining stock “will enable iBasis to continue to execute on its business plans and strategies with the full support of KPN’s management and resources.”

Last week, iBasis announced that the U.S. Securities and Exchange Commission had dropped its investigation into the company’s practice of granting stock options. According to iBasis (Nasdaq: IBAS) officials, the company was notified in a letter that also said the SEC staff won’t recommend any enforcement action against the company, or any of its current or former officers or directors.