Cisco ready to back out of Tandberg deal?

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