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Local Tech Wire
SAN JOSE, Calif. — Cisco (NASDAQ: CSCO) early Monday raised its tender offer for shares in Norwegian video-conferencing gear-maker Tandberg to $3.4 billion and extended its own decision deadline to Dec. 1.
The new offer puts a Tandberg share price at 170 Norwegian kroners, or about $30.46. The overall offer adds $400 million to Cisco’s previous offer.
Cisco wanted to have 90 percent of shares committed and had extended the deadline for the previous offer to Nov. 18.
In an announcement, the company said it had pre-acceptances from shareholders representing more than 30 percent of the company’s equity holders on top of 9.37 percent who had agreed to the earlier offer. The new investors to sign on, including Tandberg’s largest shareholders – Folketrygdfondet and OppenheimerFunds. OppenheimerFunds had opposed the previous offer.
Dow Jones reported that Panta Capital said it would accept Cisco.’s offer. Panta’s managing director, Peter Germonpre, had signed a letter recently telling Cisco the previous bid did not value Tandberg properly.
"Cisco believes that this revised offer remains consistent with the principles of prudence and financial fairness. 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," the company said in its statement.