Cisco blinks and increases Tandberg offer
Over the last several weeks, Cisco executives have publicly said on a number of occasions that their offer $3 billion for Tandberg was a fair and that they'd walk if they didn't get it. To me it looked like a high-stakes game of chicken as Tandberg shareholders held out for more to see who would blink first.
Today Cisco upped their offer to $3.4 billion.
With the $3.4 billion bid, Cisco said it now has 40 percent of shares agreeing to the bid, which still leaves a big outstanding amount.
"Cisco believes that this revised offer remains consistent with the
principles of prudence and financial fairness," Cisco said in a statement. "If Cisco does not
achieve the desired level of acceptances, the company will withdraw the
offer and evaluate alternative ways to expand our activities in the
video communications market.
As a result of the revised offer, Cisco has extended the acceptance period until December 1, 2009."
Once again Cisco is making this a take it or leave it offer, but seeing
as they have already blinked once, who is to say they won't do it again.