International voice carrier iBasis, Inc. (IBAS) said Friday it has received letters from two of its largest minority stockholders indicating their intention to reject Netherlands-based telecommunications company Royal KPN N.V.'s (KKPNY.PK) increased offer to acquire iBasis for $2.25 per share in cash.
Burlington, Massachusetts-based iBasis, an affiliate of KPN, said the Trustee of the Singer Children's Management Trust and Millennium Management LLC, who hold about 4.2 % and 3.6%, respectively of its common stock, or in the aggregate nearly 17.9% of iBasis' common stock not owned by KPN, as well as other large stockholders do not intend to tender into KPN's revised offer.
KPN, which on July 13, indicated its intention to increase its equity ownership in iBasis to 100%, upped its original buyout offer of $1.55 a share to $2.25 a share in October for the remaining stake, after iBasis rejected the original offer as grossly inadequate and not in the best interests of its minority stockholders other than KPN and its affiliates.
The company later sued KPN in the court of Chancery of the State of Delaware on August 3, accusing KPN of breaching its fiduciary duties as an iBasis shareholder.
iBasis noted today that the letter from Singer Children's Management Trust, among other things said that the stockholders' representatives were told that KPN would raise its offer to $2.25 per share if the representatives would agree to support the offer and encourage the Special Committee of iBasis' Board of Directors to drop all litigation against KPN.
Frank King, Chairman, Special Committee of iBasis' Board of Directors said, "As we evaluate KPN's revised offer, our Board of Directors and the Special Committee remain committed to taking the necessary steps to maximize value for all iBasis stockholders."
Jefferies & Company, Inc. is serving as independent financial advisor and Gibson, Dunn & Crutcher LLP is serving as independent legal counsel to the Special Committee.
IBAS is currently trading at $2.29, up $0.01 or 0.44% on the Nasdaq. KKPNY.PK is currently trading at $17.19, down $0.20 or 1.15%, on the Electronic OTC Markets.
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