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Microcap & Penny Stocks : Linkon (LKON): CTI Company -- Ignore unavailable to you. Want to Upgrade?

To: wombat who wrote (931)	4/9/1999 1:09:00 PM
From: Mel Spivak	Read Replies (1) \| Respond to of 1082

Voice on Net getting hotter: SAN JOSE, Calif. (CBS.MW) -- Shares of IDT jumped nearly 18 percent Friday following news that Internet king maker Softbank is in negotiations with IDT to invest in the Net2Phone Internet phone unit. Gary E. Rieschel, executive managing director of Softbank's West Coast tech ventures office, told CBS.MarketWatch.com that his company is nearing a deal with Net2Phone, a unit of Hackensack, N.J.-based IDT (IDTC). A spokesperson from IDT declined to comment. Shares of IDT gained 4 1/2 to 28 1/16 in brisk volume of 1.3 million shares Asked if Softbank is taking part in a possible IPO by Net2Phone, Rieschel said, "Net2Phone has not filed for an IPO at this time. Our investment would precede that filing." He said Softbank is in the "diligence process" with Net2Phone. "There is not a signed deal yet," Rieschel said. "But I am a real fan of what they are doing and think they will be very successful." Softbank owns big stakes in some of the most heavily-traded Internet companies, including Yahoo and E-Trade. Rieschel, while declining to say how much Softbank would invest, said the deal may close within the next two weeks. He wouldn't comment when asked which brokers were involved. Speculation that IDT would spin off Net2Phone in an initial public offering has helped boost the company's stock in recent weeks. The stock closed at 12 on Feb. 24. IDT has yet to file for an IPO for Net2Phone, although a bond deal late last month appeared to signal that a move is near. See related story. David Readerman, a partner in San Francisco-based Thomas Weisel & Co., said Softbank has a reputation for backing successful Internet ventures. "They've had a real hot hand," he said. "I don't know if their investments are a cause and effect to ensure success, but they've had a good track record." Steve Gelsi is a reporter for CBS MarketWatch.