Mitel offers to buy ShoreTel for $540 million; ShoreTel earlier rejected deal

MarketsAssociated Press

After being rejected earlier this month, Mitel Networks Corp. publicity announced its $540 million offer to buy rival business communications company ShoreTel Inc.

Mitel, based in Canada, said Monday that it offered to pay $8.10 for each share of Sunnyvale, California-based ShoreTel on Oct. 2. Mitel said ShoreTel's board rejected the deal and refused to speak to the company.

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In a statement Monday, ShoreTel said it received the unsolicited offer and will review it. Mitel gave ShoreTel a deadline of Nov. 20 to take the offer.

Mitel shares fell 21 cents, or 2.5 percent, to $8.21 in midday trading Monday. ShoreTel shares jumped $1.08, or 16.6 percent, to $7.59.