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UPDATE 2-Polycom gets revised bid from private equity firm

Published 2016-06-08, 09:08 a/m
© Reuters.  UPDATE 2-Polycom gets revised bid from private equity firm
MITL
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PLCM
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* Pvt equity firm revises offer to $12.25/shr
* New offer values Polycom at $1.66 bln

(Adds details, background, shares)
By Anya George Tharakan
June 8 (Reuters) - Polycom Inc PLCM.O said it received a
revised offer from a private equity firm - the third time the
bidder has revised its offer since the video conferencing
equipment maker agreed to be acquired by Canada's Mitel Networks
Corp MNW.TO .
Polycom's shares rose about 2.5 percent to the new offer
price of $12.25 in light premarket trading on Wednesday.
The revised offer values Polycom at $1.66 billion, based on
its outstanding shares as of April 21. Mitel's cash-and-stock
deal was valued at $1.96 billion in April.
Polycom, which did not name the private equity firm, said in
a filing that the new offer comprised $650 million of equity
financing and $950 million of debt financing. (http://1.usa.gov/1svOlvk)
Mitel and Polycom announced a deal on April 15, bowing to
pressure from activist investor Elliott Management. In October,
Elliott had disclosed a stake of 6.6 percent in Polycom and of
9.6 percent in Mitel.
San Jose, California-based Polycom said on Wednesday that
its board still recommended its shareholders vote in favor of
the Mitel deal.
Mitel reiterated in a statement that its acquisition offered
"superior and greater upside to both Polycom and Mitel."

The tax "inversion" deal will help Polycom trim its tax bill
as the combined company will be based in Canada. Mitel
executives have brushed off concerns the deal could be affected
by the U.S. Treasury's new tax inversion rules.
The private equity firm's previous offer in May comprised a
cash dividend of $11 per share and purchase of $650 million in
shares of a new convertible preferred stock of Polycom.

The private equity firm has held deal talks with Polycom
since 2015, according to a filing by Mitel in May.

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