(Reuters) – U.S. telecommunications provider ShoreTel Inc rejected Canadian peer Mitel Networks Corp‘s higher bid, saying it “significantly undervalued” the company.
The new proposal was highly inadequate and “is again an opportunistic attempt to acquire ShoreTel”, ShoreTel board’s chairman Charles Kissner said in a statement.
Mitel on Monday raised its offer to $8.50 per share in cash and stock, from $8.10 per share in cash.
The revised offer valued ShoreTel at about $574 million, $34 million more than Mitel’s earlier bid.
In a statement on Monday, Mitel president and CEO Richard McBee said the merger has the potential “to add sustained value to both organizations, and to solidify our combined leadership position in a highly competitive and rapidly consolidating market.”
Based in Ottawa, Mitel is a provider of business communications and collaboration software and services. It is backed by U.S. private equity firm Francisco Partners, Canada’s Wesley Clover International Corp and other investors.
Earlier this year, Mitel acquired Aastra Technologies Ltd, a Concord, Ontario-based enterprise communications provider, for $400 million.
Reporting by Anannya Pramanick in Bangalore; Editing by Sriraj Kalluvila)
(This story has been edited by Kirk Falconer, editor of peHUB Canada)
Photo courtesy of Mitel Networks Corp