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.
That’s right, a $400 million increase on a bid that CEO John Chambers had previously said was already fair. The problem is that under Norwegian law, 90 percent of shareholders need to approve the deal and Cisco didn’t have the required percentage.
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.