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Shares of Avaya Holdings  (AVYA - Get Report)  were halted briefly on Monday after the stock jumped about 10% following a report that the telecommunications-equipment maker was in discussions to combine with rival Mitel Networks.

Bloomberg reported, citing sources, that the companies have held "on-and-off discussions" about a potential deal since April. According to the Bloomberg report, Mitel submitted an offer for Avaya that "it believes would value the combined business at more than $20 per share."

Bloomberg said that if a deal were struck, the terms being considered would see Mitel's investors own about a third of the combined business and Mitel expected synergies of at least $250 million a year. The report also says no final agreements have been reached.

Avaya shares surged last week after the company said it was in advanced talks with multiple partners on potential deals.

In an Aug. 13 investor call to discuss the company's third-quarter financials, CEO James Chirico said Avaya is "in advanced discussions with multiple parties on a range of strategic transactions to maximize shareholder value," and that the company "expect[s] to bring this process to a conclusion within 30 days. 

The Santa Clara, Calif., company said in May that it had hired J.P. Morgan to evaluate strategic alternatives, after it received expressions of interest. 

Avaya emerged from bankruptcy protection about 19 months ago and underwent a leveraged buyout in 2007. The Wall Street Journal reported in April that Mitel had proposed an all-stock combination with Avaya.

The stock has traded between $10.23 and $23.40 over the past 52 weeks. Avaya stock hit an intraday high of $13.86 on Monday before being halted. It closed 0.7% lower at $12.43.

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