Cisco Again Extends Tandberg Acquisition Deadline

The company is giving Tandberg shareholders until Thursday to approve its $3.4 billion offer to acquire the Norwegian videoconferencing company.

W. David Gardner, Contributor

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.

Read more about:

Never Miss a Beat: Get a snapshot of the issues affecting the IT industry straight to your inbox.

You May Also Like

More Insights