Newsletters

Select newsletters below and click the button to sign up!

Boston News NY News
DC News Internet Daily
SiliconValley News
InternetNews Business Report




Become a Marketplace Partner


Partner With Us


Internetnews Bloggers

Recent Entries

Archives

November 2009
Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30          

Monthly Archives

Search The Blog

Netstat -vat by Sean Michael Kerner (bio)

A command line view of IT



Cisco blinks and increases Tandberg offer

By Sean Michael Kerner on November 16, 2009 10:21 AM
cisco.gif
From the 'Kroner, Corona' files:

Over the last several weeks, Cisco executives have publicly said on a number of occasions that their offer $3 billion for Tandberg was a fair and that they'd walk if they didn't get it. To me it looked like a high-stakes game of chicken as Tandberg shareholders held out for more to see who would blink first.

Cisco blinked.

Today Cisco upped their offer to $3.4 billion.

That's right, a $400 million increase on a bid that CEO John Chambers had previously said was already fair. The problem is that under Norwegian law, 90 percent of shareholders need to approve the deal and Cisco didn't have the required percentage.

With the $3.4 billion bid, Cisco said it now has 40 percent of shares agreeing to the bid, which still leaves a big outstanding amount.
"Cisco believes that this revised offer remains consistent with the principles of prudence and financial fairness," Cisco said in a statement. "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. As a result of the revised offer, Cisco has extended the acceptance period until December 1, 2009."
Once again Cisco is making this a take it or leave it offer, but seeing as they have already blinked once, who is to say they won't do it again.
During Cisco's annual general meeting last week, Cisco CEO John Chambers was asked about Tandberg and he made a half-hearted joke about Kroners (norwegian currency) and Corona (the beer). The issue of 90 percent shareholder approval though is no laughing matter and it's not one that Cisco expected to be an issue, that much Chambers made clear.

Cisco knows how to make acquisitions, they've made more than anyone else in the technology market over the last 5 years. Chambers said during the AGM last week, that making acquisitions is a core competence for Cisco.

It's clear that Cisco really wants Tandberg and is willing to pay a premium for the business, but we'll see on December 1st how far Tandberg shareholders will push Cisco.

With an extra $400 million, Tandberg shareholders should be ecstatic today. I'd be surprised if they don't all down a few Coronas as they count their Kroners in celebration.

| Comments (0) | TrackBacks (0) | Share

0 TrackBacks

Listed below are links to blogs that reference this entry: Cisco blinks and increases Tandberg offer .

TrackBack URL for this entry: https://swarm.jupitermedia.com/mt-tb.cgi/9280

Leave a comment