Cisco Tandberg bid hits an iceberg

Block of shareholders wants more than $3B

Cisco's $3 billion offer for videoconferencing leader Tandberg has been rejected by shareholders who own a 24% stake in the company. Cisco needs 90% of shareholders to "buy in" to the deal in order for it to go through, according to this report for IDG News Service's Mikael Ricknäs.

Cisco appears to have three options: raise its bid, acquire a smaller stake in the company, or walk away altogether. Cisco didn't comment on its plans in light of the stakeholders rejection.

We're betting Cisco will raise its offer. Tandberg has been touted by some within Cisco as its most important acquisition since WebEx.

What do you think Cisco will do?

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Jim Duffy has been covering technology for over 28 years, 23 at Network World. He covers enterprise networking infrastructure, including routers and switches. He also writes The Cisco Connection blog and can be reached on Twitter @Jim_Duffy and at jduffy@nww.com.