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Technology Stocks : Net2Phone Inc-(NTOP) -- Ignore unavailable to you. Want to Upgrade?

To: denhag who wrote (1505)	7/18/2005 9:59:02 PM
From: carreraspyder	Respond to of 1556

i've seen a copy of the class action filing. it's fairly well done; but the problem for the suit is that the independent committee rejected the $1.70 offer. so the actual push in the action (even though that is not its intent -- it's intent is to win the case) is for the independent committee to observe its fiduciary reponsibility -- accept only responsible offer. the commitee has a first class attorney representing it -- the problem is figuring out the goals of the commitee? and what is fair? since i know a lot about ntop and its deployments, fair to me is far and away higher than idt will offer. to someone in for a trade, fair is something over what you bought your shares for, and you would like more. idt doesn't like to spend money, and this will only go so far ... so there may and probably should be a second offer -- idt has said it will meet with the ntop committee; the committee has said it will meet with idt. the better alternative for shareholders would have been for idt to sell its shares ... but of course they do not want to sell THEIR shares and said so. idt needs voip. it's a telecom. the blackstone group is going to obtain some sort of 'fair valuation.' a problem stems from the uncertainty of that, but a large shareholder group -- longs in a private group on yahoo -- has attempted to have input by pointing out to the various parties, and some analysts, voip bloggers, what ntop actually has going for it. there are reasons why idt wanted to pull ntop back inside -- but a major reason may have been so it could spin it back out, combined with its 'winstar' spectrum asset ... that ipo would net $ for the enterprise to run. however, there are also some 14 cable/telecom rollouts that are only now getting underway, and the bid valued them at $0. it valued almost everything at $0. before the share price of ntop dropped below $1.70 idt surely planned to run this another way. a kicker is that mci is using ntop for its voip/neighborhood broadband trial. that was discovered by someone plugging his ntop voiceline acct. # into the mci website and getting back his ntop account data -- stuff only in ntop's databank. he did this several times, took screen shots, and it was blogged in a couple of voip blogs. mci subsequently said 'sh*t, and you can't plug in ntop voiceline accounts anymore. in any event, ntop is and has been very volatile. don't do the margin thing ... if this doesn't cycle to a higher offer from idt (which probably still would not be even close to fair), then there are still deployments which are working their way into the system. so it depends on what sort of trader you are. it has taken a l o n g time. a big curiousity involves what is going on with vonage currently; is bell south actually looking at vonage for $3.5 billion. the prior high extreme valuation for vonage was $1.5 billion in an ipo, and that was considered excessive. re the class action and ntop trading sideways ... the share price if being arbitraged over $1.70 -- so it won't be because of the class action. that is a separate project. the other stuff moves along, and the parties decide if they are really locking horns. imo, i hope they are ... as my vote actually is for no sale. so, that's a pretty fair statement, as was your post. the idt offer was $1.70. the share price has sold off, and sold off .. based on various things done by ntop management (liberty media getting all idt shares, instead of idt and ntop shares; changes in board of directors decided by idt; new ceo picked by idt; secondary ipo which went off at $4.50 when the share price was at $8 -- done to raise cash for mso deployments -- really messed up, ntop should have backed out -- when it was obvious that offering was going to cut the share price in half -- they didn't need the money that much, at that time). all imo.