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To: Frank A. Coluccio who wrote (9374)	5/11/1999 5:07:00 PM
From: Secret_Agent_Man	Read Replies (1) \| Respond to of 29970

Net2Phone unit in talks with AOL, AtHome By Steve Gelsi, CBS MarketWatch Last Update: 4:27 PM ET May 11, 1999 NewsWatch HACKENSACK, N.J (CBS.MW) -- Shares of IDT Corp. jumped 12 percent Tuesday after it cleared a hurdle to the anticipated initial public offering of its Net2Phone Internet telephony unit by wrapping up a $100 million bond repurchase program. IDT (IDTC: news, msgs) said in a statement that it has consummated the tender offer for its 8.75 percent senior notes, having repurchased $99.6 million of the $100 million principal of notes originally issued in Feb., 1998. Restrictions on the notes prevented an IPO of Net2Phone. The repurchase enables IDC "to effect one or more possible financing transactions involving Net2Phone," The company said Tuesday. The company, "is negotiating with other significant investors," according to the statement. "The IPO at this point is pretty much irreversible," said Ray Cuello, a bond trader and securities principal at the Investment Center. "They've drawn down on a facility who's sole purpose was to fund a financing such as an IPO. That was the primary purpose of the tender offer. The process today became irreversible." CBS.MarketWatch.com reported last month that the bond issue was nearing completion, setting the stage for an IPO. See related story. IDC's spokeswoman Sarah Hoffstetter declined to comment beyond the wording in the company's press release. She also declined comment on a statement last month by Softbank that Internet venture capital firm was about to close on a financing deal with Net2Phone. See related story. Gary E. Rieschel, executive managing director of Softbank Technology Ventures' West Coast office, did not return calls seeking comment on the status of Softbank's deal with Net2Phone. AOL talks Separately, IDT company confirmed that it's in talks with America Online (AOL: news, msgs) and At Home (ATHM: news, msgs) about providing Net2Phone service to their respective members. "We're talking to a lot of people," Hofstetter said. "Nothing has been signed." An AOL spokeswoman declined to comment. AtHome representatives did not immediately return a call seeking comment. Shares of IDT rose 3 1/8 or about 12 percent to 29 1/2 on Tuesday. Net2Phone COO David Greenblatt, quoted in the trade magazine Sounding Board, said America Online may soon be a partner via its ownership position of Netscape. cheers cbs.marketwatch.com