Star Telecommunications Inc., a Santa Barbara-based long-distance telephone company, agreed to buy PT-1 Communications Inc., a prepaid-calling-card company, for about $591 million in stock. Star will issue 21 million shares to shareholders of closely held PT-1. Star shares last traded at $28.13 before trading was halted on Nasdaq. New York-based PT-1 has been a wholesale customer of Star for three years. The transaction is expected to close in Star's fiscal fourth quarter. The acquisition would more than double Star's revenue and boost its sales to commercial and residential customers. Now, 90% of its traffic is to other telecom companies that resell its services. PT-1 had revenue of about $431 million for its fiscal year ended March 31; Star had sales of $376.2 million last year. PT-1 had net income of about $11.5 million in fiscal 1997; Star earned $5.54 million.
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