Deals
Polycom, Mitel Rise After Activist Elliott Urges Merger
- Activist investor says Polycom can become `M&A machine'
- Business-communications providers compete with Cisco, Huawei
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Polycom Inc. rose the most in seven years and Mitel Networks Corp. jumped sharply after activist investor Elliott Management Corp. said it had taken stakes of about $100 million in each and urged the business-communications network providers to merge.
Polycom faces intense competition from larger companies such as Huawei Technology Co. and Cisco Systems Inc. and should acquire rivals like ShoreTel Inc. to increase market share, the hedge fund said in a letter to the San Jose, California-based company. Elliott said it also owns stock in ShoreTel.