True, there has been a turnover of management, but the employee class action lawsuit was just last year. So the change hasn't bee all that effective IMO. The stock price is still hovering around $4 from it's $70 or $40 highs depending how far back you care to go. So the damage hasn't been rectified by new management and I doubt it ever will.
Competition in the area is fierce and growing exponentially. I personally think it's a bubble that will eventually implode because of the general public hatred of dealing with foreign call centers. The company that manages a way to keep it at home and close will win.
And finally, there has been no reference made to how StarTek will use translation effectively. Rright now, we talk to a representative in out own language. Imagine the step backward if we have to discuss complicated issues by typing back and forth. Even in English, you must have experienced misinterpretations from conversing in text. It is slow and awkward. Most people can't type worth a darn, and "tweet" style won't cut it in the service department.
Sure it is a negative reaction to the news, but I think my reasoning is rational. We'll see of course, but my prediction is that INT's proposal it will be of little use to them in the end.