IDT Corporation Reiterates Desire To Purchace Global Crossing and Applauds Continued Government Scrutiny |
Newark, NJ, April 30, 2003 -- IDT Corporation (NYSE: IDT, IDT.C), a multinational carrier, telephone and technology company, applauds the recent action by the government of the United States of America in connection with its review of the proposed Global Crossing transaction. Under such transaction, assets critical to the national security of this country would fall into the hands of foreign companies. The government’s reluctance to rubber stamp this transaction comes as no surprise. IDT Corporation has long been a vocal critic of this transaction, because, if approved, it would pose grave and unnecessary national security risks.
Press reports today indicate that Hutchinson Whampoa Ltd. has withdrawn from the transaction. This last-minute action on the very day of the deadline under the agreements for regulatory approval purportedly obviates national security concerns. In fact, this tactic only heightens such serious concerns. Prior press reports have chronicled the convoluted and transparent attempts by these foreign companies to structure the transaction in a manner designed to pass muster under important national security standards. This appears to be more of the same.
We are certain that members of Congress and other governmental bodies who have previously voiced their concerns regarding this transaction will continue to closely examine the details of any restructured transaction, particularly the relationships among Singapore Technologies, Hutchinson Whampoa Ltd. and other parties. We are confident that the continuation of the CFIUS process, as well as the congressional investigations that have already been announced, and about which we have been informed, will continue to serve to protect America’s vital national concerns.
IDT Corporation’s primary motivation has always been to protect the security of this great country. There is nothing more important in today’s world than our national security.
IDT Corporation has made no secret of its interest in acquiring the Global Crossing assets. IDT Corporation is a domestic telecom company based in New Jersey, and its acquisition of Global Crossing would pose no national security risks. IDT Corporation has and continues to be ready, willing and able to purchase these assets.
IDT Corporation, through its IDT Telecom subsidiary, is a facilities-based, multinational carrier that provides a broad range of telecommunications services to its retail and wholesale customers worldwide. IDT Telecom, by means of its own national telecommunications backbone and fiber optic network infrastructure, provides its customers with integrated and competitively priced international and domestic long distance telephony and prepaid calling cards. IDT and Liberty Media Corporation own 95% and 5 % of IDT Telecom, respectively. IDT acquired the assets of Winstar Communications in December 2001.
IDT Corporation common shares trade on the New York Stock Exchange under the ticker symbols IDT and IDT.C. As of March 13, 2003, there were about 54.4 million shares of Class B common stock outstanding, and about 25.1 million shares of common stock. Of these, approximately 4.0 million shares of Class B common stock and approximately 5.4 million shares of common stock were held by IDT Corporation.
In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate, “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described in our most recent report on SEC Form 10-K (under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations”), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. These factors include, but are not limited to, the following: potential declines in prices for our products and services; our ability to maintain and grow our retail telecommunications services, particularly our prepaid calling card business; availability of termination capacity; financial stability of our customers; our ability to maintain carrier agreements with foreign carriers; effectiveness of our marketing and distribution efforts; increased competition, particularly from regional bell operating companies; our ability to manage our growth; competitiveness of our Winstar subsidiary; impact of government regulation; our ability to obtain telecommunications products or services required for our products and services; and general economic conditions, particularly in the telecommunications markets. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.
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Apr 30, 2003 |
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