ShoreTel Rejects Mitel's Takeover Proposal

(RTTNews) - Board of ShoreTel Inc. (SHOR) Monday said it has unanimously decided to reject the $8.10 per share takeover proposal from Mitel Networks Corp. (MITL). ShoreTel said the offer significantly undervalues the company and its strong prospects for continued growth and value creation as and is not in the best interests of ShoreTel stockholders.

"After careful evaluation, ShoreTel's Board of Directors has determined that Mitel's proposal significantly undervalues ShoreTel and fails to reflect the upside of ShoreTel's growth initiatives and technology developments," said Chuck Kissner, Chair of ShoreTel's Board of Directors. "We believe Mitel's proposal is financially inadequate, is an opportunistic attempt to acquire ShoreTel's assets, and is not in the best interests of ShoreTel stockholders."

"Mitel's opportunistic offer attempts to acquire ShoreTel just before its most significant new product launch, while ShoreTel's business is transforming from a model largely based on one-time product and software sales to a recurring revenue model driven by its growing hosted services business, and only shortly after it has expanded its channel partner program to target growth in cloud-based solutions," concluded Kissner.