Net2Phone considers IDT overture
Copyright 2005 World Markets Research Limited;All Rights ReservedWorld Markets AnalysisNovember 14, 2005Julian WatsonFrom LexisNexis
Net2Phone, which was servicing 39,000 broadband telephony subscriber lines at the end of July 2005, has said that it will consider the offer of IDT Corp. to acquire outstanding shares in Net2Phone for US$2 per share.
The VoIP provider, which provides retail VoIP services directly or through partners, rejected a previous bid of US$1.70 per share.
Significance: IDT currently has 40.2% of Net2Phone's outstanding shares and 56.2% of voting shares. Should its bid be accepted, IDT will have access to some 3.1 million cable modem homes. Cable operators are currently experiencing rapid growth in VoIP subscribers and Net2Phone is well positioned to exploit this trend.