We recently reported on the news that Cisco had acquired Tandberg, the Norway based video communication business, but it seems they may decide to drop their bid.
Less than 10% of Tandberg’s shareholders accepted Cisco’s $3 billion offer. Cisco have now extended the deadline to 18th November, but have said that if its offer is not accepted by the required 90% of Tandberg’s shareholders, it will withdraw.
This may just be sabre rattling on both sides, but considering that the current offer is a premium of nearly 40% on the current share price, it’s a remarkable show of confidence by Tandberg’s shareholders.
Cisco CEO John Chambers has expressed confidence that the deal will go through, and has reminded Tandberg’s shareholders that they have already walked away from other deals this year where they couldn’t get the pricing right. Bearing in mind that one of the deals they walked away from was with LifeSize, recently acquired by Logitech, and that Tandberg has a 40% share of the video conferencing market, they may not find it so easy to walk away from this deal.