Polycom, Mitel Stocks Surge After Shareholder Proposes Merger
Polycom Inc.'s stock surged 7.5% in premarket trade Thursday, after New York hedge fund Elliott Management Corp. disclosed in a regulatory filing that it now controls a 6.6% stake in the business communications company. Elliott also disclosed it owned an active stake in Mitel Networks Corp. of 6.3%, a company Elliott proposed that Polycom acquire. Mitel's stock shot up 9.4% ahead of the open. In a letter to Polycom Chief Executive Peter Leav, Elliott urged Polycom to initiate an industry consolidation strategy, including a possible combination with other mid-tier vendors such as Mitel, to deal with industry challenges. An acquisition of Mitel, for $8.50 a share, which is 21% above Wednesday's closing price of $7.02, could help push Polycom's stock by over 30% to $14.75 by the end of 2016, Elliott said.
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