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Cisco ready to back out of Tandberg deal?

Bloomberg reports that Cisco considering dropping bid in light of shareholder resistance

By Cisco Subnet on Fri, 10/30/09 - 2:35pm.
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Bloomberg.com is reporting that Cisco is considering dropping its $3 billion bid for videoconferencing leader Tandberg in the face of resistance from a block of shareholders holding 24% of the Norwegian company. The resisting shareholders moved to block the transaction based on its current terms on Oct. 15.

The dissident shareholders are holding out for a higher offer, and Cisco needs 90% of them to be on board for it to go through. If Cisco can't win over that 90% it may walk away, the Bloomberg report states.

Cisco made its offer to Tandberg on Oct. 1. Acquiring Tandberg would make Cisco the market leader in videoconferencing, a market it views as key to its future growth.

Bloomberg cites as its source a "person familiar with the transaction" and states that Cisco may nix the deal instead of upping its initial offer. But it also quotes two sources in the story that doubt that Cisco would drop the deal.

 

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The Cisco Subnet blog is written by Network World managing editor Jim Duffy and is the official blog of Network World's Cisco Subnet community. The Cisco Subnet site is managed by Online Community Editor Julie Bort. Cisco Subnet is the independent voice of Cisco customers and is your gateway to daily Cisco news, blogs, opinion, books, prize giveaways and more. Visit the Cisco Subnet home page daily and while you are there, subscribe to the Cisco Alert e-mail newsletter, which includes news and views generated by the Cisco Subnet community as well as Cisco-related stories on Network World and elsewhere on the Web.