NEW YORK (TheStreet) -- Shares of Polycom  (PLCM) are gaining by 6.04% to $11.76 in mid-afternoon trading on Tuesday, after the company recieved a revised offer from a private-equity firm that might be more appealing that its planned Mitel (MITL) deal.

Last month, the video conferencing equipment maker agreed to be purchased by Canada's Mitel for roughly $1.96 billion, but will nonetheless engage in discussions with the unidentified private equity firm. 

Under the terms of the new deal, Polycom shareholders would be given the choice between an $11-a-share cash dividend, or the option to trade the dividend for a new convertible preferred stock; or a "take private" deal of $11.50-a-share in cash with a contingent of as much as $3 a share, the Wall Street Journal reports.

Either way, the cash dividend, existing debt and $60 million termination fee to Mitel would be funded with proceeds from the sale of preferred stock, $870 million in new debt and available cash.

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.

Polycom's strengths such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: PLCM

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 article's author.