Tuesday, June 28, 2005

Hit #49

IDT offered to buy the 60% of Net2Phone (NTOP) shares that it doesn't already own at $1.7/share in an all-cash deal. This is a 20% premium over the most recent close, but represents a 38% discount over my average cost of $2.76/share.

The stock is trading after hours at 1.74, above the offer price, indicating that the market expects a better offer. IDT already owns a majority voting stake, so it need not oblige, but this current offer definitely undervalues Net2Phone.

IDT itself represents a value buy, and will be a takeover target down the road.

Previous hit - Cablevision (#48)


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