Topic: Growth Stocks

Stock Pickers Digest Hotline – Thursday, April 15, 2016

Article Excerpt

MITEL NETWORKS CORP., $9.11, symbol MNW on Toronto, develops and markets products for business telephone systems. It will buy another industry company—Polycom (symbol PLCM on Nasdaq)—for $1.96 billion U.S. in a friendly takeover. Activist investor Elliott Management Corp. has pushed Mitel to join with Polycom. Elliott, founded by hedge-fund manager Paul Singer in 1977, first acquired stakes in the two companies in October 2015. It now holds 6.6% of Polycom and 9.6% of Mitel. Mitel will pay $3.13 U.S. in cash plus 1.31 Mitel shares for each Polycom share. Mitel makes technology that integrates land lines and mobile phones. The company also offers call centre and videoconferencing products. Polycom makes and develops business communication systems that combine data, video and voice in one product. It also makes telepresence technology. That allows co-workers in different locations to simulate a shared office. The merger will let Mitel and Polycom cross-sell their products to each other’s clients. That broader range of products should also attract more…