Friday, December 4, 2009

Cisco Systems Acquires Norwegian Tandberg

. Friday, December 4, 2009

By stockOzone team

After a couple of months of negotiations, networking behemoth Cisco Systems, Inc. (CSCO) announced Friday that it holds enough shares of Tandberg ASA (TAA) to have voting rights and take ownership of the Norwegian firm, which makes videoconferencing systems.

Cisco said that 89.1% of Tandberg shareholders have agreed to accept its tender offer, and the company bought another 2% of Tandberg’s shares outstanding, bringing the total number of shares owned to 102 million shares or 91.1%.

The tender period on Cisco’s offer for Tandberg actually expired on Thursday, and the company conceded it had not reached the 90% share-ownership threshold. Due to some last-minute share-purchases not included in the original count; however, the company was able to reach 90% share ownership, a spokesman told Dow Jones.

Cisco originally bid $3 billion for the videoconferencing company, but had to boost its offer when many Tandberg shareholders rejected the offer. Cisco raised its bid to $3.4 billion, and had to extend the acceptance deadline three times.
Shares of Cisco rose 33 cents or 1.38% in Friday’s session, closing at $24.16 a share. The stock was up another 4 cents in after-hours trading.

Disclosure: Author does not own any of the stocks discussed here.

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