KPN sets October deadline for iBasis bid

Dutch telco KPN's battle for iBasis has taken yet another turn. Now, the Dutch telco is extending its bid period for competitive VoIP wholesaler iBasis until Oct. 23. During this time, KPN plans to launch a defense against a lawsuit iBasis filed against the company in the Delaware Court of Chancery. This suit argues that KPN committed fraud and breached fiduciary duties to iBasis and its minority stockholders.

Since KPN launched an unsolicited bid to purchase the remaining shares it has in iBasis for $1.55 per share in cash-an offer that was set to expire at midnight Aug. 24--the two service providers have become embroiled in a legal battle for control of the company. A Special Committee of iBasis' Board of Directors advised stockholders to reject KPN's offer. The Special Committee ruled that KPN's offer was "grossly inadequate, opportunistic and not in the best interest of iBasis' minority stockholders." As of Aug. 22, only 75,775 shares, or less than 0.25 percent of iBasis' outstanding shares KPN does not own, were tendered into the current offer.

 "We greatly appreciate the strong support we have received from iBasis stockholders," W. Frank King, chairman of the special committee of iBasis' Board of Directors, said in a release. "The very low number of shares tendered into KPN's offer unequivocally demonstrates that iBasis stockholders believe that KPN's unsolicited offer is grossly inadequate and significantly undervalues the Company's current performance and long-term prospects. Since the announcement of KPN's offer, iBasis' stock has consistently traded far above KPN's offer price - further evidence that the market believes that KPN's offer was grossly inadequate." 

For more:
- here's the iBasis release

Related articles
KPN maintains pursuit of iBasis
KPN not budging on offer for iBasis
KPN makes move to buy remaining stake in iBasis


Like this story? Subscribe to FierceTelecom!

The Telecom industry is an ever-changing world where big ideas come along daily. Our subscribers rely on FierceTelecom as their must-read source for the latest news, analysis and data on the intersection of telecom and media. Sign up today to get telecom news and updates delivered to your inbox and read on the go.

Suggested Articles

The battle for SD-WAN supremacy remains fierce among vendors with VMware, Cisco and Fortinet holding down the top-three spots in Q3 market share.

Broadband remains a key asset as the coronavirus surges across the globe, which has led to a speedier transition to 1-Gig services.

Lumen CTO Andrew Dugan believes enterprise CIOs are turning to edge compute because it provides better performance for their applications.