Cisco thinks Tandberg needs more time, not money, to close the deal. Tandberg got another 9 days to think about it when Cisco extended the deadline to respond to its $3 billion offer to Nov. 18.
Cisco did not hike its offer though, as some would have thought -- or hoped. Cisco's facing resistance from shareholders owning about 30% of Tandberg to raise its offer. And two investment firms with a stake in Tandberg issued an open letter to Cisco CEO John Chambers and Senior Vice President Ned Hooper detailing why Cisco's offer did not reflect Tandberg's value.
Cisco says its offer represents a 38% premium on the price of Tandberg stock as of July 15. In the open letter, the investment firms say the date is irrelevant as Tandberg had been rumored to be in play for 18 months.
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