iBasis to accept KPN's raised bid

Monday 23 November 2009 | 14:02 CET | News
Dutch operator KPN and US carrier services provider iBasis have entered into a settlement agreement under which KPN will make an increased offer for the remaining shares in iBasis, of USD 3.00 per share in cash on 8 December. The upped offer values the 44 percent stake not owned by KPN at around USD 93.3 million. iBasis' board of directors have unanimously approved the agreement and have recommended that shareholders tender their shares. The final offer price of USD 3.00 per share represents a premium of 130.8 percent over the the closing price on 10 July, the last trading day prior to the announcement of KPN's tender offer and a 32.7 percent premium over the closing price on 20 November. KPN currently has a 56 percent stake in iBasis. KPN and iBasis also have agreed to dismiss all litigation between them and iBasis will terminate its 30 July stockholder rights plan. iBasis's operations will continue to be located in Burlington, Massachusetts. The tender offer remains subject, among other things, to the condition that a majority of public stockholders tender their shares. If at completion KPN owns at least 90 percent of outstanding shares, it will promptly begin a second-step merger in which all remaining public stockholders will receive USD 3.00 per share for their shares. As of midnight on 20 November, around 491,707 shares were tendered in and not withdrawn from the offer.

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