Robbins LLP: Acquisition of Polycom, Inc. (PLCM) by Mitel Networks Corporation (MITL) May Not Be in Shareholders’ Best Interests
Robbins LLP is investigating the proposed acquisition of Polycom, Inc. (NASDAQ: PLCM) by Mitel Networks Corporation (NASDAQ: MITL). On April 15, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which Mitel Networks will acquire Polycom. Under the terms of the agreement, Polycom shareholders will receive 1.31 shares of Mitel Networks stock and $3.12 cash for a combined value of $13.44 for each share of Polycom common stock
Is the Proposed Acquisition Best for Polycom and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at Polycom is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $13.44 merger consideration represents a premium of only 22.40% based on Polycom’s one-month average closing price. This premium is significantly below the average one month premium of nearly 30.22% for comparable transactions within the past five years. Further, the $13.44 merger consideration is significantly below the target price of $17.00 set by analyst UBS on May 11, 2012 and $15.00 set by an analyst at Northland Securities, Inc. on January 28, 2016. In the last three years, Polycom traded as high as $14.22 on February 12, 2015, and most recently traded above the merger consideration – at $13.67– on December 3, 2015.
In light of these facts, Robbins LLP is examining Polycom’s board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Polycom shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
Polycom shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.