H,
In the absence of not hearing a response from you to my #7994 post of yesterday evening, I spoke with David Brainson of IDT's Investor Relations Department. Following is a review of that call.
1. He assured me that NO ONE in IDT's management will have any NTOP IPO shares allocated to them. Everyone at IDT will be in the same boat as the average shareholder. i.e. Everyone will have to buy shares in NTOP in the after market, if they are not able to get it through their broker.
2. That management had considered a plan similar to the one I had outlined to you last night, but rejected it. They believed, that the support from the large institutions in the after market, would be very important and therefore wanted the IPO shares in very strong hands.
3. He opined, that all of this would become much clearer once the road show for the NTOP IPO began.
4. I asked if he had received many calls like mine over the last two days? He said he had. When I asked if he thought this was why IDTC's stock was down over the last two days, he said, "If they are selling because they are not getting NTOP IPO shares at the initial price, they are cutting off their nose to spite their face"
5. He stated that the ability of IDT to retain CONTROLLING interest was very important. He went on to say that management held many more shares than I did, and that I should be rest assured that the way it is set up, was best for all current shareholders. This, he reiterated, would become clearer from the road show. Once I knew that NO ONE in management would receive preferential treatment and have NTOP IPO shares allocated to them, it was hard for me to go on any further.
6. He again stated that I would feel better once the road show began, and ended the conversation by confirming that earnings would be released June 3, with a conference call later in the afternoon.
Jules |
