It's been anything but smooth sailing for Ottawa-based Mitel Networks Corp. and its proposed merger with rival Inter-Tel Inc. In April the Ottawa communication equipment maker announced the plan, but meanwhile investment company Vector Capital Corp. made its acquisition intentions known as well. Then earlier this week former Inter-Tel CEO Steven Mihaylo, who still owns Inter-Tel shares, reportedly sent a letter advising shareholders to reject Mitel's share-purchase offer. He proposed a plan to find new sources of capital instead. Then yesterday Inter-Tel announced that Vector had pulled out, based in part on Mihaylo's recapitalization plan.

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