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Net2Phone rejects IDT overture

Wed, 07/06/2005 - 8:00pm
Jeff Baumgartner, CED

An independent committee has rejected an offer from IDT to snap up all of the outstanding shares of Net2Phone it doesn't already own for $1.70 per share.

The committee, in a letter to IDT President Ira Greenstein, stated the offer was "not acceptable," but did invite Greenstein and IDT to meet with the committee and its advisors "to discuss the situation."

The letter added that the committee is set to retain an impartial party to assess the value of Net2Phone's intellectual property assets. It also asked IDT if it would be willing to sell its Net2Phone shares to a third party, if that party was willing to buy all of Net2Phone.

Among its businesses, Net2Phone provides turnkey VoIP services for cable operators such as Bresnan Communications and Liberty Cablevision of Puerto Rico.

IDT announced its intentions to purchase the Net2Phone shares on June 28. At the time, IDT owned 2,773,798 shares of Net2Phone common stock and 28,896,750 shares of Net2Phone class A common stock, giving IDT 41 percent of Net2Phone's outstanding equity securities and roughly 57 percent of the total voting power of Net2Phone's outstanding equity securities.

Net2Phone stock was up 3 cents to $1.82 per share in early trading Thursday. Its closing price on June 28 was $1.41.

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