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UPDATE 1-Polycom to discuss PE offer in challenge to Mitel

Published 2016-05-23, 06:46 p/m
© Reuters. UPDATE 1-Polycom to discuss PE offer in challenge to Mitel
MITL
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PLCM
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(Adds details)
May 23 (Reuters) - Video conferencing equipment maker
Polycom Inc PLCM.O said on Monday it received a revised
proposal from a private equity firm that could be "superior" to
Mitel Networks Corp's MNW.TO offer.
Polycom's shares rose 4.2 percent to $11.56 in after-market
trading.
Polycom, which agreed to be bought by Canada's Mitel for
about $1.96 billion in April, said it intends to engage in
discussions with the private equity firm, identified as Sponsor
1.
Under the revised proposal, Polycom stockholders would
receive a cash dividend of $11 per share and the private equity
firm would purchase $650 million in shares of a new convertible
preferred stock of Polycom.
After the proposed deal, Sponsor 1 would own 56 percent of
Polycom's outstanding equity on an as-converted basis.
Under Mitel's offer, Polycom stockholders will get $3.12 in
cash and 1.31 Mitel shares for each of their shares.
Hedge fund Elliott Management, which holds a 6.6 percent
stake in Polycom and a 9.7 percent stake in Mitel, has been
pushing the companies to merge since October.
Mitel said in a statement on Monday that its acquisition
offers superior and greater upside to Polycom.
Sponsor 1, which has been in merger talks with Polycom since
2015, sent Polycom a revised proposal in May.

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