(Reuters) - Mitel Networks Corp, a provider of business communications services, offered to buy smaller U.S. peer ShoreTel Inc for about $540 million as part of efforts to expand in the United States.
Kanata, Ontario-based Mitel's cash offer of $8.10 per share represents a 24 percent premium to ShoreTel stock's closing price on Friday.
Sunnyvale, California-based ShoreTel's shares were up at $7.58 - just below the offer price - in early trading on Monday.
Mitel's shares were up about 1 percent at C$9.61 on the Toronto Stock Exchange, its Nasdaq-listed shares were up 3 percent at $8.67.
Mitel said it made its offer public after ShoreTel's board rejected an earlier proposal sent on Oct. 2 and refused to engage with the company.
Mitel Chief Executive Richard McBee said a deal would bring together two companies "with strong and complementary market footprints, particularly in the U.S. where ShoreTel does more than 90 percent of its business."
A spokesman for ShoreTel was not immediately available for comment.
Mitel said its offer would remain open until 5:00 p.m. ET on Nov. 20.
Mitel in November bought smaller Canadian rival Aastra Technologies Ltd in a deal for C$392 million ($374 million) to expand in Europe.
(Reporting by Narottam Medhora and Swetha Gopinath in Bangalore; Editing by Simon Jennings and Sriraj Kalluvila)