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W. David Gardner
December 1, 2009
1 Min Read
With the clock ticking away on Cisco's Tuesday deadline for Tandberg stockholders to approve the acquisition of the Norwegian videoconferencing company, Cisco again extended its $3.4 billion offer, this time to Thursday.
The firms had entered into an agreement on Oct. 1 for a $3 billion acquisition, but a minority group of Tandberg stockholders moved to squeeze more money out of Cisco, which then raised its offer. Norwegian regulations require that 90% of Tandberg stockholders must approve the deal.
The two firms are thought to be close to completing the acquisition and issued a joint press release Tuesday, which stated, "The extended offer period expires at 5:30 p.m. CET on Thursday. Soon after expiration of the extended offer period... Cisco will announce whether the 90% condition for the offer had been met."
Early last month, consultants Ernst & Young examined the original $3 billion deal and declared that Cisco's bid was fair. The Cisco offer represented a more than 50% jump in the price of Tandberg stock when reports of a possible acquisition began to surface.
Tuesday's extension is an indication of just how much Cisco wants Tandberg and its advanced videoconferencing equipment. Cisco has more than $30 billion in cash and has been on a tear lately as it expands its strengths in routers and switches and moves into server and data center markets.
Cisco recently announced its plans to acquire Starent Network for $2.9 billion. That deal, too, has been challenged by some stockholders, who have filed litigation to block the acquisition.
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