Inteliquent, a voice interconnection provider, is continuing its turnaround strategy with a plan to return cash to its shareholders, including a special dividend of $1.25 per share, and to initiate a quarterly dividend of $0.0625 per share of its common stock. The service provider said that both dividends should be declared and paid within the next three months.
In addition, the service provider established an agreement with the Clinton Group--the investment manager to several partnerships that collectively own more than 1.6 million shares of Inteliquent--to declare the dividends and appoint one new independent director before the end of this year.
Gregory P. Taxin, managing director of Clinton Group, said in a release that they believe "the sale of the global data business, the return of approximately $40 million to shareholders, the ongoing dividend and the commitment to further augment the Board are all well considered steps that will help create significant shareholder value."
These latest moves come at a transitional time for Inteliquent.
Two of its key management team members--Surendra Saboo, the company's president and chief operating officer and one of the chief architects behind acquisition of Tinet S.p.A. in 2010, and CFO Robert M. Junkroski--left the company in October 2012. The Clinton Group also said in a letter to James P. Hynes, chairman of Inteliquent that the service provider spent too much to acquire Tinet.
Just last month, the service provider sold its global data services business to GTT for $54 million. By selling the data business, the company is able to continue refocus its efforts on its core voice services business.
- see the release
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Goodbye Neutral Tandem-Tinet, hello Inteliquent