SAN DIEGO & SAN JOSE, Calif.--(BUSINESS WIRE)--Shareholder rights attorneys at Robbins Arroyo LLP are 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.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/shareholders-rights-blog/polycom-inc-april-2016
Is the Proposed Acquisition Best for Polycom and Its Shareholders?
Robbins Arroyo 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 Arroyo 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, ddonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The law firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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