Delaware court rules on iBasis requests
Burlington's iBasis Inc., a wholesale carrier of international long-distance calls, announced that on Aug. 14, the Delaware Court of Chancery rejected Royal KPN N.V.'s effort to stay iBasis' discovery in connection with the complaint filed by iBasis against KPN based on fraud and breach of KPN's fiduciary duties to iBasis and its minority stockholders.
Royal KPN owns 56 percent of iBasis, and the Dutch telecom company made a buyout offer to purchase the remaining shares at $1.55 per share; iBasis called that offer "grossly inadequate" and had sought an injunction against KPN. IBasis shares closed at $2.22 a share on Friday.
IBasis said today in a press release that the Delaware Court of Chancery's vice chancellor "also rejected KPN's request that the court hear on an expedited basis only KPN's legal arguments with respect to the stockholder rights plan implemented by the iBasis board of directors to protect the interests of iBasis' stockholders. Instead, the vice Chancellor ruled that, after discovery for both sides, the court will hold a hearing on Oct. 8 and 9, 2009, on the issues both iBasis and KPN have before the court, including iBasis' application to stop KPN's tender offer."
According to a recent AP story, iBasis is claiming that KPN is attempting to depress iBasis's stock price artificially so it can purchase shares from minority shareholders.