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ShoreTel Gets Unsolicited Bid For $8.10 Per Share

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ShoreTel Inc (NASDAQ: SHOR) said Monday it's evaluating an unsolicited bid for $8.10 per share, or $540 million, from Mitel Networks Corp (NASDAQ: MITL).

ShoreTel gained nearly 19 percent Monday, trading recently at $7.74 per share. Mitel slumped 3.4 percent.

Mitel said its written offer of October 2 was rejected by ShoreTel, which has "refused to engage with us."

"It continues to be our strong preference to work together with the ShoreTel," Mitel's Chief Executive Richard D. McBee wrote in a letter to ShoreTel's board Monday.

McBee said Mitel's offer for ShoreTel remains open until November 20.

Mitel, an Ottawa-based business communications company, has a market capitalization of $914.2 million versus Sunnyvale, California-based ShoreTel's $416 million. Mitel shares are off 19 percent year to date; ShoreTel is off nearly 17 percent.

"The business communications market is rapidly consolidating and Mitel has clearly stated that we intend to be a consolidator in this market," McBee said.

ShorTel said Monday it hired Blackstone Advisory Partners to help evaluate Mitel's bid. ShoreTel didn't comment to Mitel's assertion that it had rejected the offer.

Posted-In: M&A News Intraday Update

 

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