Inter-Tel Urged to Move Quickly on Former CEO's Buyout Offer
By Mae Kowalke
TMCnet Associate Editor
News has been flying around the wires recently regarding the potential sale of voice and data communications company Inter-Tel to its founder and former CEO, Steven Mihaylo.
The company currently is considering a joint bid by Mihaylo and Vector Capital Corp., Reuters reported Monday.
“A special committee of the board will evaluate this offer in due course,” an Inter-Tel (News - Alert) spokesperson confirmed today during a phone conversation with TMCnet.
According to the Reuters report, Mihaylo and Vector said they will raise their bid to $23.25 per share (based on INTL Acquisition Corp.’s valuing of the company at $619 million) if Inter-Tel (News - Alert) moves quickly on the offer.
A New York Post article today says that pressure is being put on Inter-Tel from shareholder Millenium Management LLC to sell quickly in order to obtain the higher bid.
According to New York Post, Mihaylo has set an August 25 deadline for Inter-Tel to accept or reject the bid. The company previously rejected a $22.50 per share offer from the former CEO.
New York Post said that Millenium owns 1.4 percent of Inter-Tel, and that Mihaylo has a 19 percent stake in the company.
Reuters noted that Mihaylo’s resignation as CEO was announced in February, and that he began public efforts to buy the company in April.
Mae Kowalke previously wrote for Cleveland Magazine in Ohio and The Burlington Free Press in Vermont. To see more of her articles, please visit Mae Kowalke’s columnist page.
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