Tel-Save Cancels Planned Acquisition

Tel-Save Holdings Inc. said it won’t acquire Communications Telesystems International, even though the company said last week that it planned to expand its long-distance telephone business. Tel-Save said it had been in talks to buy the closely held San Diego-based long-distance company, which had $325 million in sales last year, for $500 million to $600 million in stock. Tel-Save wasn’t available for additional comment. CTI said it was looking for acquisitions and other ways to expand its long-distance business and was no longer in talks to be acquired. Chief Executive Daniel Borislow had put the company up for sale in February after being outbid last year in two acquisitions. New Hope, Pa.-based Tel-Save’s shares rose 75 cents to close at $13.25 on Nasdaq.