Business leaders at Mitel will not take legal action against the City of Ottawa over a $7-million Internet and telephone contract.

The company made the statement Wednesday after threatening to take the city to court over what they called an unfair bidding process.

Even though the company submitted the lowest price, the high-tech firm lost the bid to replace the city's dated telephone system.

City council disagreed that the bidding process was not fair, and awarded the contract to Bell-Cisco.