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.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jim Duffy

Network World
Show Comments

Essentials

Brother MFC-L3745CDW Colour Laser Multifunction

Learn more >

Mobile

Exec

Sony WH-1000XM4 Wireless Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?