Mitel Concedes Defeat in Attempts to Buy ShoreTel
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Mitel is done trying to buy ShoreTel – at least for now.
The Canada-based provider of IP phone systems and UC software said on Monday that it has withdrawn its latest, $8.50-per-share offer to purchase U.S.-headquartered rival ShoreTel.
The proposal was slated to stay open until Nov. 20 but Mitel said it cut the process short “in light of the repeated refusal of ShoreTel’s board of directors to engage in discussions of any kind.” ShoreTel rejected the latest bid on Nov. 12, calling it “highly inadequate” in light of the company’s growth prospects.
Still, despite Mitel’s withdrawal, that may not mean the vendor won’t try again with a larger dollar amount. Indeed, it seems to want ShoreTel badly, arguing that the combined companies would create one of the largest providers of IP business phone systems, cloud- and premise-based, although with emphasis on the services aspect that generates recurring revenue.
A spokeswoman did not immediately reply to an inquiry about whether Mitel leaders are considering another, bigger offer, or if this marks the end for a potential Mitel-ShoreTel union.
