Cisco Again Extends Tandberg Acquisition Deadline - InformationWeek

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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.

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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