Siris Capital Said to Be Mystery Bidder for Polycom

  • Mitel says Polycom received separate takeover offer on May 6
  • Polycom rejected proposal and declined to engage, filing shows

Polycom Inc., the video-conferencing company that agreed last month to be bought by Canadian technology company Mitel Networks Corp., received a takeover offer on May 6 from a separate party, according to a regulatory filing Friday.

That party, identified as “Sponsor 1” in the filing, is Siris Capital Group, people with knowledge of the matter said, asking not to be identified because the information is private. Siris didn’t respond to a request for comment.

Polycom’s rejection of Siris’s offer doesn’t mean that Siris can’t come back with a revised or improved proposal, said the people familiar with the situation.

Sponsor 1’s May 6 offer wasn’t its first. The firm has been in talks with Polycom since last year, according to the filing. In November, it sent a non-binding letter indicating its interest in a potential acquisition of Polycom for $12 to $12.50 a share in cash. In April, there was another offer, which Sponsor 1 valued at $13.50 a share.

Sponsor 1 valued the revised May 6 bid at $14.50 a share, according to the filing. Mitel said it determined the proposal wouldn’t lead to a superior offer. Polycom’s board reviewed the offer separately, rejected it and declined to engage further, according to the filing.

Polycom dropped 2.9 percent to $10.97 at the close in New York Friday, giving the company a market value of about $1.5 billion.

Mitel agreed to buy Polycom for cash and stock in a deal valued at about $1.96 billion, according to a statement April 15.

Under the terms of the agreement, Polycom stockholders will be entitled to $3.12 in cash and 1.31 Mitel common shares for each common share of Polycom. That is about $13.68 per share, based on the closing price of Mitel on April 13, the company said in the statement.

(Corrects November offer in fourth paragraph of story published May 13.)
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