ShoreTel Board To Mitel: No, Thanks

ShoreTel's board of directors unanimously rejected Mitel's $574 million takeover bid on Wednesday, calling the offer "highly inadequate."

The latest offer was for $8.50 a share -- $8.10 in cash and 40 cents in Mitel common stock -- and it followed a mid-October offer of $8.10 a share, or about $540 million. That offer was rejected late last month.

ShoreTel CEO Don Joos said in a statement issued Wednesday the company is better off without Mitel, a key competitor.

"We are confident that executing our strategic plan is the best path forward and will deliver substantially more value to ShoreTel stockholders than Mitel's significantly inadequate proposal," Doos said.

Mitel's merger offer was unsolicited. ShoreTel partners have been roundly skeptical about the proposed transaction and told CRN that ShoreTel is the stronger vendor and Mitel's offering was "a joke."

"Mitel wouldn’t bring anything to our table," said Don Gulling, president of Verteks Consulting, an Ocala, Fla.-based ShoreTel partner, in an interview with CRN earlier this week. "I see us winning against [Mitel] in the marketplace all the time."

Kristin Bent contributed to this story

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