Mitel (MITL) Stock Surges After Failed Polycom Deal
NEW YORK (TheStreet) -- Shares of Mitel Networks (MITL) - Get Report are up 18.27% to $7.12 today after Polycom (PLCM) terminated a deal with the company, instead accepting a $2 billion bid from Siris Capital Group, a private equity firm.
Over 12 million shares of the company have traded hands today as opposed to the stock's average of 1 million shares per day.
Mitel had previously offered $3.12 per share in cash and 1.31 Mitel shares for each Polycom share in April. Under the Siris deal announced today, Polycom shareholders will earn $12.50 per share in cash.
Mitel, however, will still make $60 million in termination fees paid by Polycom.
The company said that it was disappointed, but that it wasn't "in the best interest" of their shareholders to counter Siris's bid, according to the Wall Street Journal.
Mitel is a communications company based in Kanata, Ontario.
Separately, TheStreet Ratings rated this stock as a "hold" with a ratings score of C.
The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, TheStreet Ratings finds weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk.
You can view the full analysis from the report here: MITL
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.