Mitel Will Not Increase Inter-Tel Offer

Inter-Tel Says Mitel Will Not Raise Its Acquisition Offer TEMPE, Ariz. (AP) --
Communications software maker Inter-Tel Inc. said Friday Mitel Networks Corp. will not increase its $691 million acquisition offer.

Inter-Tel agreed in April to be purchased by a subsidiary of the privately held communications company, with shareholders receiving $25.60 per share in cash.

Mitel Chief Executive Don Smith said in a letter to Inter-Tel that it is denying the company's request to raise its offer, saying it does not see a reason to boost what it considers an already fully valued bid.

Mitel said its offer is the only firm bid received and that Inter-Tel has failed to find a superior offer during a 24-month process that included the hiring Bear Stearns and UBS.

"The market is consolidating and in the absence of a more favorable merger offer, Inter-Tel may be left out, with a leveraged balance sheet, unable to effectively compete against larger, well capitalized entrants," the letter stated.

Inter-Tel shares fell 12 cents to $25.35 in morning trading.

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