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
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