Inter-Tel Urged to Move Quickly on Former CEO's Buyout Offer

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.