ah_khairy
08-12-2009, 09:08
Cisco wins control of Tandberg
91.1% stake has company looking to rapidly close deal
By Cisco Subnet (https://www.networkworld.com/community/user/1860) on Fri, 12/04/09 - 11:17am.
Cisco late yesterday won control of Norwegian videoconferencing leader Tandberg (https://www.networkworld.com/news/2009/100109-cisco-to-buy-videoconferencing-vendor.html) with ownership of 91.1% (https://www.networkworld.com/news/2009/120409-cisco-wins-tandberg.html?hpg1=bn) of the company's shares. Cisco had to raise its initial $3 billion offer and extend the offer acceptance deadline three times (https://www.networkworld.com/community/node/48752) in order to gain control of the company.
Cisco's initial offer, made on Oct. 1, was rejected by more than 90% of Tandberg shareholders (https://www.networkworld.com/news/2009/111009-cisco-tandberg-deal-drop.html).
At the expiration of the third acceptance deadline yesterday, Cisco said it controlled 89% (https://newsroom.cisco.com/dlls/2009/corp_120309.html) of Tandberg shares. Combined with the 2% stake Cisco acquired in Tandberg in November, this pushed Cisco's holdings above the 90% share ownership needed to secure the deal, according to this report (https://www.reuters.com/article/idCNGEE5B30WA20091204?rpc=44) from Reuters.
Cisco struggled to gain that 90+% in the face of stiff resistance from Tandberg shareholders. Less than 10% accepted Cisco's initial bid of $3 billion. Cisco raised its offer to $3.4 billion.
By acquiring Tandberg, Cisco is looking to fill out its desktop and mid-range videoconferencing product portfolio. Its high-end TelePresence offerings can cost hundreds of thousands of dollars and are apparently too costly and elaborate to scale downmarket (https://www.networkworld.com/news/2009/100109-cisco-tandberg-analysis.html), as Cisco initially intended.
Cisco views video as the "killer app" that will fill up bandwidth and drive equipment upgrades into the next decade
.
Source
https://www.networkworld.com/community/node/48768?source=NWWNLE_nlt_cisco_2009-12-07
91.1% stake has company looking to rapidly close deal
By Cisco Subnet (https://www.networkworld.com/community/user/1860) on Fri, 12/04/09 - 11:17am.
Cisco late yesterday won control of Norwegian videoconferencing leader Tandberg (https://www.networkworld.com/news/2009/100109-cisco-to-buy-videoconferencing-vendor.html) with ownership of 91.1% (https://www.networkworld.com/news/2009/120409-cisco-wins-tandberg.html?hpg1=bn) of the company's shares. Cisco had to raise its initial $3 billion offer and extend the offer acceptance deadline three times (https://www.networkworld.com/community/node/48752) in order to gain control of the company.
Cisco's initial offer, made on Oct. 1, was rejected by more than 90% of Tandberg shareholders (https://www.networkworld.com/news/2009/111009-cisco-tandberg-deal-drop.html).
At the expiration of the third acceptance deadline yesterday, Cisco said it controlled 89% (https://newsroom.cisco.com/dlls/2009/corp_120309.html) of Tandberg shares. Combined with the 2% stake Cisco acquired in Tandberg in November, this pushed Cisco's holdings above the 90% share ownership needed to secure the deal, according to this report (https://www.reuters.com/article/idCNGEE5B30WA20091204?rpc=44) from Reuters.
Cisco struggled to gain that 90+% in the face of stiff resistance from Tandberg shareholders. Less than 10% accepted Cisco's initial bid of $3 billion. Cisco raised its offer to $3.4 billion.
By acquiring Tandberg, Cisco is looking to fill out its desktop and mid-range videoconferencing product portfolio. Its high-end TelePresence offerings can cost hundreds of thousands of dollars and are apparently too costly and elaborate to scale downmarket (https://www.networkworld.com/news/2009/100109-cisco-tandberg-analysis.html), as Cisco initially intended.
Cisco views video as the "killer app" that will fill up bandwidth and drive equipment upgrades into the next decade
.
Source
https://www.networkworld.com/community/node/48768?source=NWWNLE_nlt_cisco_2009-12-07