Cisco has increased its offer for Norwegian teleconferencing
company Tandberg after a majority of shareholders rejected the
initial offer of $3bn.
The move comes despite Cisco's
recent resistance to calls to increase the offer to secure its
first European acquisition.
Ned Hooper, chief strategy officer at Cisco, said in a
blog posting that the original bid was fair and represented a
good deal for Tandberg shareholders.
Hooper said Tandberg acknowledged that the original offer
represented a 38.3% premium to the closing share price on 15 July
2009 and an annual return of 102% to Tandberg shareholders.
Holders of only 9.4% of shares accepted the original Cisco
offer, despite the endorsement of the Tandberg board, according to
the
Financial Times.
The deal was rejected by holders of 24% of Tandberg shares, more
than enough to veto the deal under Norwegian law which requires 90%
approval.
Cisco said it would extend the offer period to 1 December, but
the revised deal of $3.4bn is its final price.
"The revised offer remains consistent with the principles of
prudence and financial fairness," Cisco said.
Cisco said it would withdraw the offer and evaluate alternative
ways to expand its activities in the video communications market if
the revised deal is not approved by shareholders.