UPDATE: KPN Reaches Deal To Buy The Rest Of iBasis

Royal KPN NV (KPN.AE), the Netherlands' largest telecommunications company, Monday said it had reached a deal to acquire the remaining shares in U.S.-based voice-over Internet carrier iBasis Inc. (IBAS), ending pending litigation between the two.

KPN said its "last and final" offer, of $3 per iBasis share in cash, valued its remaining 44% stake at $93.3 million.

"KPN's acquisition of the remaining publicly-held interests in iBasis will enable iBasis to continue to execute on its business plans and strategies with the full support of KPN's management and resources," KPN said in a statement, adding that iBasis' operations will continue to be located in Burlington, Massachusetts.

KPN already owns 56% of iBasis, and has sought since July to acquire the rest. Its first offer of $1.55 a share, valuing the 44% stake at $48.2 million, was rejected as "grossly inadequate" and the U.S. company later filed a complaint in a Delaware court accusing the KPN of violating federal securities laws and sought an injunction against the tender.

KPN raised its bid again in October to $2.25 per share, but that was also rejected.

As part of the settlement KPN and iBasis have agreed to the dismissal with prejudice of all claims in the litigation pending between the parties in the Delaware Court of Chancery and the United States District Court for the Southern District of New York. In addition, iBasis has agreed to terminate its July 30, 2009 stockholder rights plan, both companies said in a joint statement.

At 1255 GMT, KPN was trading up 2.2% at EUR11.86, slightly outperforming a higher overall Amsterdam market. iBasis shares closed Friday at $2.26 on NASDAQ.

-By Archibald Preuschat, Dow Jones Newswires; [phone]; [e-mail]