Elliott Issues Letter To Polycom Board Calling For Immediate Strategic Review

(RTTNews) - Elliott Management Corporation disclosed active stakes and accompanying 13-D filings in Polycom Inc. (PLCM) and Mitel Networks (MITL) and sent the following letter to the Board of Directors of Polycom. Elliott sees potential Polycom and Mitel combination driving over 80% upside to Polycom stock price by end of 2017.

In the Letter to Polycom Board, Elliott Calls for immediate comprehensive strategic review.

Elliott strongly believes a combination of mid-tier Unified Communications and Collaboration or UCC vendors will create greater scale, significant synergies and a meaningful valuation uplift for stockholders.

While Elliott strongly advocate that Polycom engage in a comprehensive strategic review of all alternatives, Elliott said it believes that Consolidation Strategy should be one of the alternatives most thoroughly explored and considered.

According to Elliott, Polycom's stock can increase by over 30% to $14.75 per share by the end of 2016 and nearly 85% to $20.50 per share by the end of 2017. The transaction is so compelling that Polycom could pay $10.00 per share for Mitel in an all-stock transaction and still yield a 70% return by the end of 2017 and a 95% return by the end of 2018. Few investment opportunities exist today with this return potential.

In the pre-market trade, PLCM is currently trading at $12.85, up $1.41 or 12.33%.

In the pre-market trade, MITL is currently trading at $7.66, up $0.64 or 9.12%.