Cisco, Tandberg Acquisition Deal Is Do or DieBy Jessica Davis | Posted 2009-12-02 Email Print
Cisco Systems' planned acquisition of video conferencing giant Tandberg will either get the green light or get shut down Dec. 3. Cisco had placed a condition on the $3.4 billion deal, requiring control of 90 percent of shares before it will complete the acquisition. As of Dec. 1, that condition had not yet been met.Cisco Systems (NASDAQ:CSCO) will announce Dec. 3 whether enough Tandberg (OSL:TAA) shareholders have accepted its offer, effectively enabling Cisco to acquire the video conferencing giant.
Cisco says as of Dec. 1 it controlled about 84 percent of outstanding shares of Tandberg, but the company had set a 90 percent condition for its offer to acquire the company to be met.
If Cisco does not attain the 90 percent, the company says it will announce whether it will withdraw the offer or waive the 90 percent condition. Cisco says it will not extend the offer past Dec. 3.
Cisco initially announced on Sept. 30 plans to fortify its telepresence empire by acquiring Tandberg.
After Tandberg shareholders rebuffed Cisco's original offer of about $3 billion as too low, Cisco increased the offer in mid-November to total about $3.4 billion.
Since Cisco announced its plans to acquire Tandberg, Logitech has announced that it will acquire upstart telepresence vendor LifeSize.
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