Networking giant Cisco is considering walking away from a $3 billion deal to purchase videoconferening firm Tandberg after some shareholders in the Norwegian company were said to be pushing for a higher offer, according to a Bloomberg report. Skip related content
Citing a person familiar with the transaction, the report explained that those shareholders resisting a sale at the current price have 24 per cent of Tandberg. It said Cisco would strongly consider walking away if it is unable to get investors with 90 per cent of the company to agree to its 153.5 kroner-a-share offer.
Cisco made the original bid for the firm at the beginning of October, with the aim of expanding its videoconferencing business. Tandberg is the second largest manufacturer of such equipment in the world and its chief executive, Fredrik Halvorsen, would become the head of a new videoconferencing division if a deal goes through.
Tandbergs board have backed Ciscos offer, however, and industry experts seem to believe the deal will still go through in its present form. I think its quite unlikely that theyll drop their offer, everything points to them buying Tandberg, Arctic Securities ASA analyst Martyn Hoff was reported as saying.
Its probably smart of them to send some signals to scare the shareholders into accepting the offer.
Tandberg shareholders have until 9 November to accept the offer.
