Mitel has increased its proposal to acquire all of the outstanding shares of ShoreTel common stock to $8.50 per share in cash and stock, representing a total equity value of approximately $574 million. Mitel proposes to deliver to ShoreTel shareholders $8.10 per share in cash and $.40 per share in Mitel common shares, or approximately 2.72 million shares.
This increased proposal represents a 31% premium to ShoreTel's unaffected stock price on October 17th, 2014, and a 38% premium to ShoreTel's enterprise value.
The increased proposal was extended to ShoreTel's Board of Directors in a letter from Mitel's President and CEO, Richard McBee.
"We continue to believe that the combination of our two companies offers a compelling opportunity to add sustained value to both organisations, and to solidify our combined leadership position in a highly competitive and rapidly consolidating market," said McBee.
"In addition to the obvious benefit of an immediate and significant premium for ShoreTel shareholders, a combination of our two companies would create far superior value than could reasonably be obtained by ShoreTel as a standalone entity."