Mitel Says ShoreTel’s Board Rejects Takeover Offer

Mitel Networks Corp. said ShoreTel Inc. rejected a $540 million offer for the Sunnyvale, California-based business communications firm.

“We are disappointed that the ShoreTel board has rejected our proposal and refused to engage with us,” said Richard McBee, Mitel’s chief executive officer, in a statement today. “We remain open to constructive and progressive discussions.”

The Kanata, Ontario-based Mitel offered to acquire all of ShoreTel’s outstanding common shares for $8.10 a piece in cash, or 24 percent higher than the Oct. 17 closing price. The offer remains open until Nov. 20, Mitel said.

“The business communications market is rapidly consolidating and Mitel has clearly stated that we intend to be a consolidator in this market,” McBee said.