Cisco to Acquire Tandberg for $3 billion
Posted October 2, 2009on:
Cisco Systems will acquire Norway’s video conferencing equipment maker Tandberg ASA for $3 billion (17.2 billion Norwegian crowns) in cash, the companies informed on Thursday.
“Tandberg’s board of directors have unanimously decided to recommend its shareholders to accept the offer,” informed Tandberg.
The analysts had different opinions about the offer price, as some stated it fair while others said that it was too low. “This sounds like a pretty good price so I would think it will end up there. But the bid will stand for four weeks and there might be other offers,” said Martin Hoff, Analyst, Arctic Securities.
“The probability for a competing bid was low, but not impossible. From an industrial perspective, this is right for the company,” said Espen Torgersen, Analyst, Carnegie. He also added that the price was “highly acceptable”.
Tandberg’s share price rose up to 12.8 percent to a high of 156 Norwegian crowns before getting back to 154 Norwegian crowns. The shares of Cisco trading in Frankfurt were one percent lower at $23.28 (15.98 euros).
Cisco Systems informed that Fredrik Halvorsen, Chief Executive Officer, Tandberg would continue to lead the unit.