Cisco boosts Tandberg AV bid
Tuesday, 17 November 2009
Cisco has significantly increased its bid price for Norway’s Tandberg audio visual company.
The original price of Kroner 153.5 has been boosted to NKr170 per share. The improved offer price will cost Cisco an extra $400m (the new bid is worth $3.4bn). The first bid was an 11% premium over the closing price ahead of the bid (although Cisco says it represented a 38% premium over this past summer’s typical price).
Cisco has also extended the offer acceptance period to December 1. Norwegian law requires a 90% acceptance, and Cisco had received 9.4% acceptances.
“Cisco believes that this revised offer remains consistent with the principles of prudence and financial fairness,” Cisco said. “If Cisco does not achieve the desired level of acceptances, the company will withdraw the offer and evaluate alternative ways to expand our activities in the video communications market.”
Cisco’s logic is that Tandberg’s video conferencing technology makes a perfect fit with its own TelePresence business.