Cisco says it may drop Tandberg

Cisco meets shareholder resistance in videoconferencing buyout

There’s a good reason Cisco extended its $3 billion offer deadline for Tandberg another nine days: Less than 10 per cent of shareholders accepted the deal.

Cisco today said it may drop its offer for Tandberg if it fails to generate 90 per cent shareholder acceptance by the new deadline of Nov. 18. Cisco has only received acceptance from 9.37 per cent of Tandberg shareholders – far less than the 90 per cent it needs to acquire the videoconferencing leader.

“Soon after expiration of the extended offer period on Wednesday, November 18, 2009, at 5:30 pm CET, Cisco will announce whether the 90 per cent condition for the offer has been met. If not, Cisco will evaluate whether or not to withdraw the offer,” the company said in a statement.

Cisco yesterday extended the deadline for acceptance to Nov. 18. The deadline had been Nov. 9.

Cisco is facing resistance from groups of shareholders owning 30 per cent of Tandberg. It also received an open letter from two of them claiming the $3 billion price undervalues the company.

Cisco has said it is confident a deal will get done, but it also said it does not intend to acquire the company if the price is not right. The company claims its offer represents a 38 per cent premium on Tandberg.

Tandberg owns 40 per cent of the videoconferencing market. Cisco covets its leadership position and midrange and desktop offerings, which could help Cisco fill bandwidth with video and drive sales of switches and routers to increase bandwidth capacity for video.

Cisco also views video as a vital component to address the $30 billion collaboration market.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jim Duffy

Network World
Comments are now closed.

Latest News Articles

Most Popular Articles

Follow Us

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Resources

Best Deals on GoodGearGuide

Compare & Save

Deals powered by WhistleOut
WhistleOut

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?