Inter-Tel Inc. recently announced that a special committee of its board of directors, with the assistance of its financial and legal advisors, has rejected as inadequate an unsolicited acquisition proposal from Steven G. Mihaylo and Vector Capital (the Mihaylo Group) to purchase all shares of Inter-Tel, other than those held by Mihaylo, for cash at a price of $22.50 per share.
The committee concluded that the Mihaylo Group’s proposal did not reflect the value of Inter-Tel and its technology, and consequently failed to provide appropriate value to its shareholders. The committee said that management’s long-term strategy, including the roll out of the new Inter-Tel 5600 and version 2.0 software for the Inter-Tel 5000 family, the forthcoming introduction of the 7000 communications systems and enhancements to Inter-Tel’s portfolio of advanced software applications represents a better alternative for enhancing shareholder value. The committee also said that accepting Mihaylo Group’s submitted offer, before the company has had the opportunity to fully implement its strategy, would deprive shareholders other than Mihaylo from realizing Inter-Tel’s value, particularly in light of the company’s recent investment in R&D for its new products, software applications and solutions.
Inter-Tel also said that its committee has authorized UBS Investment Bank, the company’s financial advisor, to review and explore various strategic options for the company.
Inter-Tel Inc. www.inter-tel.com