Cisco this week said is extending the acceptance period for its $US3 billion cash offer to acquire Tandberg to Nov. 18. The initial acceptance deadline was Nov. 9.
The terms and conditions set out in the offer document remain in place during the extended offer period, Cisco said. Cisco's facing pressure from shareholders owning about 30 per cent of Tandberg to raise its offer.
The board of Tandberg unanimously recommended on Oct. 1 that shareholders accept Cisco's offer, which Cisco says represents a 38 per cent premium on the price of Tandberg stock as of July 15. But in addition to the opposition from shareholders owning 30 per cent of the company, 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.
Tandberg is the leading vendor in videoconferencing. Cisco said Tandberg's products would help it fill out its mid-range and desktop videoconferencing portfolio -- Cisco's own TelePresence systems occupy the high end -- and also enhance its offerings in the $US30 billion collaboration market.
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