Millenco supports Mitel buyout of Inter-Tel

By Lisa Kerner

Charlotte, N.C., July 20 - Inter-Tel (Delaware), Inc. shareholders led by Millenco, LLC plan to vote in favor of the April 26 merger agreement among Inter-Tel, Mitel Networks Corp. and Arsenal Acquisition Corp.

Millenco said that given Inter-Tel's preannounced second-quarter earnings shortfall and deteriorating credit markets, "the immediate and fixed consideration being offered in the above-described transaction outweigh the risks associated with the implementation of Mr. Mihaylo's recapitalization plan," according to a schedule 13D filing with the Securities and Exchange Commission.

As previously reported, on April 26, Mitel agreed to acquire Inter-Tel for $723 million, or $25.50 per share. Company founder Steven G. Mihaylo recommended that the company use $200 million from its cash reserves and an additional $200 million of borrowings to begin a tender offer to purchase, after expenses and break-up fees, some 13.4 million Inter-Tel shares at $28.00 per share

Millenco owns 823,353 shares, or 3%, of Inter-Tel, a Tempe, Ariz.-based company that specializes in applications using networks and server-based communications software.

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