Electronics Production | November 11, 2009
Cisco’s bid for Tandberg AV may be dropped
Cisco is currently bidding to acquire Norway’s Tandberg but has acquired less than 10% support from Tandberg’s shareholders. Cisco says it may drop the bid.
Cisco needs at least 90% acceptance of its overall $3bn bid. Some vociferous Tandberg shareholders think that the bid is too low. They have until next week, Nov 18, to accept Cisco’s terms, which Cisco says represents a 38% premium for shareholders. Cisco says it remains confident of success, but will walk away if the price is not right, which seems to be the sentiment of some Tandberg stock-holders. Cisco's chief strategy officer, Ned Hooper, said in a blog post last week quoted by the Wall Street Journal that the company will "always act with fiscal prudence" in its bid for Tandberg, highlighting the possibility that the company was prepared to drop the deal, according to rapidtvnews.com