Cisco is reportedly considering dropping its $3 billion bid for videoconferencing leader Tandberg in the face of resistance from a block of shareholders owning 24% of the Norwegian company.
According to Bloomberg.com, which cites as its source a "person familiar with the transaction," Cisco may nix the deal instead of upping its initial offer. The dissident shareholders are holding out for a higher offer, and Cisco needs 90% of them to be on board for it to go through.
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If Cisco can't win over that 90% it may walk away, the Bloomberg report states. But it also quotes two sources in the story that doubt that Cisco would drop the deal.
Cisco made its offer to Tandberg on Oct. 1. Acquiring Tandberg would make Cisco the market leader in videoconferencing, a market it views as key to its future growth.
The resisting shareholders moved to block the transaction based on its current terms on Oct. 15.
Reprinted with permission from Networld World. Story copyright 2009 Networld World Inc. All rights reserved.
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