Mitel Proposes To Buy ShoreTel For About $540 Mln In Cash - Quick Facts

(RTTNews) - Mitel Networks Corp. (MITL) Monday, proposed to buy all of the outstanding shares of ShoreTel, Inc.'s (SHOR) common stock for $8.10 per share in cash, representing a total equity value of nearly $540 million. The offer represents a 24 percent premium to ShoreTel's closing stock price on October 17 and a 30 percent premium to ShoreTel's enterprise value.

Earlier, Mitel had sent a letter to ShoreTel on October 2, as well as on October 20, outlining the proposal with the goal of moving rapidly to the negotiation and closing of a transaction.

"We are disappointed that the ShoreTel Board has rejected our proposal and refused to engage with us. Mitel continues to believe that the proposal offers ShoreTel shareholders an attractive premium. We remain open to constructive and progressive discussions and for that reason I have advised the ShoreTel Board that our proposal will remain open until 5pm EST on November 20, 2014, " said Richard McBee, CEO of Mitel.