FYI.
IDT Closes Acquisition of STAR Telecommunications' PT-1 Phone Card Division
NEWARK, N.J. & SANTA BARBARA, Calif.--(BUSINESS WIRE)--Feb. 2,
2001--IDT Corp. (Nasdaq:IDTC - news) and STAR Telecommunications, Inc.
(Nasdaq:STRX - news) today announced that the companies have closed the sale of
the debit card division of STAR's PT-1 Communications business unit to IDT Corp.
Under the terms of the transaction, which was initially announced on January 29, 2001,
IDT acquired PT-1's debit card business and has assumed PT-1's obligations with
respect to unused minutes on cards in distribution. Additionally, IDT has indemnified
PT-1 for certain litigation liabilities and, under certain circumstances, will make an
agreed amount of cash available to PT-1 to pay claims of other creditors.
``We plan to smoothly integrate the PT-1 debit card brand into our existing calling card
operations, with the goal of building on our industry-leading position,'' stated Howard
Jonas, Chairman and CEO of IDT. ``We are also looking forward to sharing as a
stockholder in the turnaround that is already well underway at STAR under Brett
Messing's capable leadership.''
``We are committed to returning STAR to profitability and developing partnerships
with the leading companies in our industry,'' stated Brett Messing, Chairman and CEO
of STAR. ``The sale of the phone card division to IDT will greatly assist us in achieving
both of these objectives.'' |
