KPN Completes $93.3 Million Cash Offer For iBasis

Royal KPN NV (KPN.AE), the Netherlands' largest telecommunications company, Monday said it successfully completed its $93.3 million cash offer for U.S.-based voice-over Internet carrier iBasis Inc. (IBAS), after the two parties in November ended litigation over the acquisition.

In 2008 iBasis' net sales amounted to $1.32 billion, and "the acquisition of the remaining 44% of iBasis fits within KPN's international wholesale strategy," a KPN spokesman said.

KPN held 56% of iBasis prior to launching its first bid in July to acquire full control at $1.55 a share, or around $48.2 million. That first offer was rejected by iBasis as "grossly inadequate," leading the Massuchsetts-based firm to file a complaint in a Delaware court against the Dutch company, seeking an injunction against the tender and accusing it of violating federal securities laws.

In October 2009 KPN raised its bid to $2.25 a share, then finally to $3 a share, valuing the remaining stake at $93.3 million. In late November, all litigation was halted and iBasis agreed to terminate its stockholder rights plan.

KPN now holds 93.2% of iBasis and intends to complete the acquisition through a merger in which all iBasis shares not yet validly tendered will be converted into the right for iBasis shareholders to receive $3.00 a share.

iBasis will become a fully owned subsidiary of KPN and its shares will be delisted from the Nasdaq stock market Monday.

At 1015 GMT, KPN shares traded up 0.3% at EUR11.71.

Door Anna Marij van der Meulen; Dow Jones Nieuwsdienst, [phone]; [e-mail]