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Cisco ups bid for Tandberg to $3.4bn

Cisco has increased its offer for Norwegian teleconferencing company Tandberg after a majority of shareholders rejected the initial offer of $3bn.

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.

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