iBasis wins latest match in preventing KPN's takeover

Wholesale VoIP provider iBasis may not have the deep pockets of an incumbent service provider, but it's not going to back down from KPN's hostile takeover tactics. It appears iBasis has won the latest round in the battle for the company as the Delaware Court of Chancery rejected Royal KPN N.V.'s effort [1] 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.

Although KPN claims its offer is fair, iBasis' Special Committee of the Board of Directors argues iBasis' stockholders reject [2] KPN's unsolicited bid to acquire the outstanding shares of iBasis common stock for $1.55 per share. iBasis has launched a complaint in the court to halt what it says is a "grossly inadequate" offer. iBasis' legal action prompted KPN to launch a counterclaim in the same court. KPN, which owns a 56 percent majority stake in iBasis, argued to the court that iBasis' lawsuit was more than a move to prevent it from making a tender offer for the shares it owns.

In addition, Delaware Court of Chancery Vice Chancellor Leo Strine rejected KPN's request that the court only hear KPN's legal arguments about the stockholder rights plan implemented by iBasis' Board of Directors to protect the interests of iBasis' stockholders. However, KPN and iBasis will get their day in court. On Oct. 8 and 9, the Delaware Court of Chancery will hold a hearing on the issues KPN and iBasis have presented to the court, including iBasis' application to block KPN's tender offer and KPN's arguments regarding iBasis' stockholder rights plan.

For more:
- see the press release here [3]

Related articles
KPN maintains pursuit of iBasis [1]
KPN not budging on offer for iBasis [2]
KPN sees Q2 revenue dip, but net profit grows [4]