iBasis fights Royal KPN's 'grossly inadequate' tender offer in court

By Lisa Kerner

Charlotte, N.C., Aug. 18 - iBasis, Inc. filed a compliant in U.S. District Court for the Southern District of New York against Royal KPN NV, alleging KPN violated federal securities laws in its tender offer for iBasis.

According to iBasis' complaint, KPN misled the market in connection with its offer and prevented iBasis stockholders from making an informed decision about tendering their shares.

The offer, iBasis said, is part of KPN's "fraudulent scheme" to drive down iBasis' stock price in its bid to take the company private.

In the complaint, iBasis seeks declaratory and injunctive relief to stop KPN's unsolicited tender offer to acquire all of the outstanding shares of iBasis common stock for $1.55 each in cash. iBasis believes the offer is "grossly inadequate."

KPN, with a 56% stake in iBasis, began its tender offer on July 28.

iBasis' special committee recommended that the company's shareholders reject the KPN offer, which expires on Monday.

As previously reported, the Delaware Court of Chancery on Friday rejected KPN's effort to stay iBasis' discovery in a similar lawsuit. The court also rejected KPN's request that the court hear, on an expedited basis, KPN's arguments regarding iBasis' stockholder rights plan.

iBasis filed a complaint against KPN claiming fraud and breach of KPN's fiduciary duties to iBasis and its minority stockholders.

The Delaware court will hold a hearing on Oct. 8 and Oct. 9 on the issues iBasis and KPN have before it.

KPN is a telecommunications company based in Amsterdam.

iBasis is a voice carrier and wholesale provider of voice, mobile data and prepaid calling products and services. It is based in Burlington, Mass.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.