Tandberg stockholders to Chambers: No deal at your price
Tandberg
Related Blog Posts
- Cisco to buy videoconferencing firm Tandberg for $3 billion
- Report: Cisco may drop $3 billion bid for Tandberg
- OppenheimerFunds opposes Cisco's Tandberg offer
On The Web
Site Search
Get the latest news alerts: Follow LTW at Twitter
Local Tech Wire
RESEARCH TRIANGLE PARK, N.C. — In a public blog post addressed to Cisco (NASDAQ: CSCO) CEO John Chambers, two investment advisers with holdings in Tandberg ASA say Cisco's $3 billion offer for the video-conferencing equipment-maker based in Norway is off-base and does not account for Tandberg's growth potential.
"We believe that a higher, more appropriate price for the acquisition of Tandberg, taking into account its growth profile and the substantial scope for sales and cost synergies, is not in conflict with Cisco’s respect of the principles of prudence and financial fairness," Peter Germonpre of Panta Capital in London and Dan Scott of Scott & Associates AG in Zurich wrote in an open letter posted on Panta's Web site.
They addressed the letter to Chambers and Ned Hooper, senior vice president of corporate development and the consumer group and the person Cisco says is responsible for acquisitions strategy.
Cisco's offer for Tandberg shares closes Monday. The equipment maker reportedly has decided that there's no deal if it cannot get 90 percent of Tandberg's equity holders to agree.
"While we fully agree with your statements that each corporate entity should respect the broader principles of prudence and financial fairness in pursuing an active M&A strategy, we also believe that in this specific case your offer does not reflect the true value of Tandberg’s business prospects nor does your offer reflect the premium to market value that you claim it does," Germonpre and Scott wrote.
Cisco said its offer, made Oct. 1, represented a 38 percent premium on Tandberg's July 15 stock price.
"We fail to understand why you pick July 15th as a reference date," the investment advisers said, adding that Tandberg has been a takeover target for a year and a half.
Copyright 2012 WRAL Tech Wire. All rights reserved.
Featured
Hot Off The Wire
- Red Hat's new Fedora lead; Cree LED breakthrough; Google, Cisco top 'green' list; Oracle rejects SAP settlement; Yahoo board shakeup
- Will Cisco report progress in its turnaround efforts?
- Cisco server fire threat; Lenovo Android upgrade; cloud startup vs. Cisco; Epic's Blesinski to host awards; Google 'Solve for X'
E-mail Preferences
The Skinny
- Charlotte's startup efforts pick up steam as more data pours in
- 'Battle in Bay 7' returns - Are you techies ready for some basketball?
- Inside RTP's new angel fund: Founders meeting 'significant' need
- Who won 'Social Bowl'? Super Bowl ads paying fans to play
- RTP broadband firm Overture, minus two top execs, launches new look
- Will RTP-based ChannelAdvisor go public? They're thinking
- What brands are winning Super Bowl hype? Two Durham firms to find out
- In Super Bowl of social media, Patriots win, Triangle firm says
- Big job cuts coming at IBM? Don't be surprised
- Erskine Bowles is among those who can cash in big time on Facebook IPO