Investor Elliott Associates, which carries a strong influence in the tech sector, has acquired significant stakes in Mitel and Polycom (over 5% in each) and is urging the companies to merge and create a new global powerhouse in the UCC market. In a letter sent by Elliott officials to Polycom's board of directors and CEO Peter Leav the investment firm stated...
'Elliott strongly believes a combination of mid-tier UCC vendors will create greater scale, significant synergies and a meaningful valuation uplift for stockholders. Elliott would be willing to provide financing for Polycom's acquisition of targets in the space, something we have successfully done before'.
Elliott officials also expressed its views to Mitel's head honchos, saying that Mitel is a good 'platform vehicle to roll up the sector and is also an attractive merger candidate for Polycom'.
In a statement, Mitel responded... 'We welcome Elliott Associates' interest and ongoing investment in Mitel. We have reviewed Elliott's recent filings on schedule 13-D and share their views as to consolidation opportunities in our industry. Mitel's senior management has consistently discussed its intention to consolidate the market, and in recent years has proactively leveraged M&A activity to successfully deliver shareholder value. As always, we look forward to creating further value for all Mitel shareholders'.