Cisco considers abandoning takeover Tandberg offer

Beijing time, October 31 morning news, according to foreign media reported yesterday, according to a source familiar with the news, Cisco may abandon the 17.2 billion Norwegian krone (about 3.04 billion U.S. dollars) acquisition of Norwegian video conferencing technology company Tandberg, because the shareholders who hold 24% of the company's shares to pressure Cisco,　　Ask them to raise the offer price. The source, who declined to be named, said that if Cisco was unable to obtain support from shareholders holding tandberg90% shares for its offer of 153.50 Norwegian krone (about $21.73) per share, it would likely give up the offer.　　In terms of sales, Tandberg is the world's second largest video conferencing equipment manufacturer. "I think Cisco is unlikely to give up the offer, and all indications are that it will buy Tandberg," said Martin Hoff, an independent investment agency Arctic Nomura analyst Martin Hoff. This is likely to be a signal from Cisco to scare Tandberg shareholders and force them to accept an offer.　　He rated Tandberg's stock as "buy". Cisco launched an offer to buy Tandberg on October 1, with the aim of expanding its business to the video conferencing market. The offer requires the support of investors holding tandberg90% shares in order to achieve a complete takeover.　　Tandberg, a Norwegian division of the Nordic Bank (Seb AB), which is lobbying against shareholders, said in a statement on October 15 that 21 shareholders would not agree to "sell" the shares under the current terms of offer. According to the regulatory documents submitted by Tandberg, the Norwegian native pension fund Folketrygdfondet holds a 10.09% stake in the company and is its largest shareholder. "We will not comment on the acquisition process," Olaug Svarva, Managing director of Folketrygdfondet, said in Friday. "If Cisco withdraws its offer, then Tandberg's share price is likely to fall from Cisco's proposed 153.30 per cent bid for the Norwegian krone," Michel Prackman Michiel Plakman, Robeco NV, a Rotterdam asset management company, said. But I would be surprised if Cisco really withdrew its offer. I think this is just a tactic for investors hoping to get a higher offer price. "Tandberg's board supports Cisco's offer," he said.　　Cisco said that if the deal succeeds, it will appoint Tandberg CEO Frederick Halferson (Fredrik Halvorsen) as head of the extended video Conferencing department.　　Tandberg spokesman Gille Orsen Geir Olsen declined to comment. By the end of July, Cisco had held 35 billion of dollars in cash and its offer to Tandberg was 11% higher than the September 30 closing price. (Tangfeng)