Two iBasis stockholders don't like Royal KPN bid
Burlington's iBasis Inc. said that its board of directors has received letters from two its largest minority stockholders indicating their intention to reject Royal KPN NV's revised unsolicited tender offer to acquire all outstanding shares of iBasis common stock that KPN doesn't already own for $2.25 per share in cash.
IBasis is a wholesale carrier of international long-distance calls. In 2007, it merged with the international wholesale voice business of Royal KPN NV, a Dutch telephone company, in a deal that gave KPN a controlling stake in iBasis. (To read a Globe story about that merger, please click here.) Royal KPN owns roughly 56 percent of iBasis stock.
In July, KPN offered to acquire the stock in iBasis that it didn't already own for $1.55 a share. IBasis called that offer inadequate and in August took legal steps to block it. (To read a Globe story about that, please click here.)
On Oct. 5, Royal KPN upped its offer to $2.25 a share. The same day, iBasis said that it would review that higher offer and make a recommendation to iBasis stockholders "in due course."
In a press release today, iBasis said: "The two stockholders, the trustee of the Singer Children's Management Trust ("Singer") and Millennium Management LLC, the general partner of Millennium Partners LP ("Millennium") beneficially own approximately 4.2 percent and 3.6 percent, respectively, of iBasis' common stock, or in the aggregate approximately 17.9 percent of iBasis' common stock not owned by KPN. Other large stockholders have also informed iBasis that they do not intend to tender into KPN's revised offer."
Today's press release included a statement from W. Frank King, chairman of the special committee of the iBasis board that is reviewing the Royal KPN offer.
"We appreciate the feedback we have received from our stockholders," King 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." (Globe Staff)