Cisco raises offer on Norway's Tandberg
US networking giant Cisco said on Monday it had raised its bid for Norwegian video-conference company Tandberg from 3.0 billion dollars (2.0 billion euros) to 3.4 billion dollars.
The American firm signalled it would still try to grow in the video-conference market if its attempt to acquire Tandberg failed.
The sector is benefiting from the economic crisis as video-conferencing enables firms to lower or eliminate the costs associated with business travel.
Cisco raised its offer to 170 Norwegian kroner (20.4 euros, 30.5 dollars) per share after facing resistance from shareholders who believed the initial offer of 153.5 kroner was too low.
The company said that the new offer, 10.7 percent higher than the previous one made on October 1, was its final attempt to acquire Tandberg.
"The new offer represents the offeror's final price for this transaction," Cisco sent in a statement sent to the Oslo stock exchange.
"If the offeror does not achieve the desired level of acceptances, the offeror will withdraw the new offer and evaluate alternative ways to expand Cisco's activities in the video communications market," it said.
The company added that about 40 percent of Tandberg shareholders had already accepted the new offer.
Cisco's offer is conditional on acceptance on behalf of 90 percent of the shares.
On November 10, Cisco said it held rights to 10.5 million Tandberg shares, corresponding to 9.37 percent of its stock, and extended its initial offer to November 18.
Its chances for success were slim as shareholders, representing about 30 of the shares, said they would not accept the offer under those conditions, diverging from the board who recommended the previous offer.
Cisco's new offer pushed Tandberg's shares up 4.00 percent to 163.9 kroner at 1100 GMT on the Oslo stock market.
Tandberg employs 1,500 people worldwide.
AFP
