The ongoing saga for KPN to acquire the remaining shares in Burlington, Mass-based VoIP wholesaler iBasis has taken yet another turn as the Dutch operator says it will not raise its offer for the company. After receiving an unsolicited bid from KPN in mid-July, iBasis concluded that the Dutch service provider's offer of $1.55 per share in cash was not sufficient.
A war of words has emerged between the two service providers since KPN launched its bid. A special committee of iBasis' board of directors advised its minority shareholders reject KPN's offer, and last week iBasis filed a lawsuit in the State of Delaware's Chancery against Royal KPN N.V. iBasis' three largest shareholders (Millennium Management, the general partner of Millennium Partners Lloyd Miller, and Karen Singer, Trustee of the Singer Children's Management Trust), which collectively hold 25 percent of the shares not already held by KPN, have rejected KPN's bid.
KPN, however, remains unfazed by iBasis' actions. In a statement, KPN dismissed iBasis' suggestion that its buyout was being done improperly, and it believes it can overcome any legal challenges.
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