As reported earlier, Inter-Tel had set last Friday, June 29th as the date for their shareholder meeting to determine the fate of the planned merger with Mitel.
Well, that plan took a strange twist Friday, as the Board of Directors decided to postpone the meeting.
Friday, it was announced that the Special Meeting of Stockholders to vote on the merger with Mitel Networks Corporation has been rescheduled for July 23 in Phoenix. The Board of Directors has set the close of business on Monday July 9 as the date of record to determine the Inter-Tel stockholders who are entitled to vote at the Special Meeting.
Steven G. Mihaylo, founder and former Chief Executive Officer of Inter-Tel issued a release, expressing “dismay at the Board’s decision to postpone the Special Meeting.”
According to Mihaylo,
“I am confident that shareholders have had sufficient time to evaluate their investment in order to determine the course of action that would most maximize their returns, and should have been allowed to express their wishes today. I urge shareholders to demand that the Board cease these delay tactics and accept the voice of the shareholders.”
In his Friday statement postponing the meeting, Alexander L. Cappello, the Chairman of the Special Committee of Inter-Tel’s Board of Directors said:
After careful consideration, the Special Committee has decided to postpone the vote on the Mitel merger so that all Inter-Tel stockholders can evaluate recent developments when deciding how to vote their shares. We believe stockholders should have the opportunity to consider the significant recent changes in the debt capital markets adversely affecting the availability and cost of financing for acquisition or recapitalization transactions and the disclosure in Steven G. Mihaylo’s definitive proxy statement, which has only recently become available. In addition, given that the second quarter is concluding, the Special Committee believes that Inter-Tel stockholders should have the benefit of an update regarding the Company’s preliminary second quarter sales results, which the Company expects to announce at the end of next week.
So what happened?
Did Inter-tel think they would lose? With Mihaylo owning 19.2% of the company, did they feel they just might not get the majority they needed to get the merger passed?
The saga continues, and it will be interesting to see what if any effect the upcoming earnings announcement will have on the whole process. If the numbers are good, will it bolster Mihaylo’s plan to recapitalize the company? If the numbers are bad, will it prove that the merger with Mitel is the best course of action?
Stay tuned.
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