PRESS RELEASE: ShoreTel® (NASDAQ: SHOR) (the “Company”), the leading provider of brilliantly simple phone systems and unified communications solutions, today announced that its Board of Directors (the “Board”), after careful consideration with the assistance of its independent financial and legal advisors, has unanimously decided to reject the revised, unsolicited proposal from Mitel Networks Corporation (NASDAQ: MITL) (“Mitel”).
The ShoreTel Board concluded that Mitel’s revised, unsolicited proposal of $8.50, which is comprised of $8.10 per share in cash plus $0.40 per share in Mitel common stock, significantly undervalues ShoreTel and its strong prospects for continued growth and value creation as it continues to implement its long-term strategic plan, and is not in the best interests of ShoreTel stockholders.
“After careful deliberation, ShoreTel’s Board of Directors has determined that the incremental value represented by Mitel’s revised, unsolicited proposal is highly inadequate, and that this revised proposal is again an opportunistic attempt to acquire ShoreTel,” said Chuck Kissner, Chair of ShoreTel’s Board of Directors. “We continue to believe that Mitel’s highly inadequate proposal does not reflect the value inherent in ShoreTel’s business, nor does it reflect ShoreTel’s compelling prospects for long-term growth and value creation.”
Don Joos, president and CEO of ShoreTel, added, “ShoreTel’s focus on successfully executing its strategy has been driving improved financial performance and value creation, as evidenced by our recent financial results including our fiscal first quarter 2015 earnings report. 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.”
On October 27, 2014, the ShoreTel Board unanimously rejected Mitel’s previous unsolicited proposal to acquire all outstanding common shares of ShoreTel at a price of $8.10 per share in cash, following careful consideration with the assistance of its independent financial and legal advisors.
Blackstone Advisory Partners L.P. is serving as financial advisor and Fenwick & West LLP is serving as legal counsel to ShoreTel.