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Cisco Extends Acceptance Period For Tandberg Offer To Nov 18

DOW JONES NEWSWIRES

Cisco Systems Inc. (CSCO) extended its takeover offer for Norwegian Tandberg ASA (TAA.OS), which has faced some opposition from minority owners who say the offer is too low.

The offer period, which was expected to expire Monday, was extended to Nov. 18. All terms and conditions remain in place, according to Cisco.

Cisco offered to buy the video-conferencing-equipment maker in a deal that values the company at around 17.2 billion Norwegian kroner ($3.08 billion). The offer represents an 11% premium to Tandberg's share price Sept. 30 and a 38% premium to the price on July 15 before reports emerged about an upcoming bid.

But investment firm Panta Capital and advisory firm Scott & Associates AG said in an open letter that the current offer doesn't adequately reflect Tandberg's operational performance or the valuation of its peers.

Last week, Cisco reported its fiscal first-quarter profit dropped 19% as lower sales offset improved margins, and the company noted strong sequential trends and that the economic outlook has improved. Against a backdrop of greater merger activity, Cisco also agreed to acquire Starent Networks Corp. (STAR) last month.

Shares were down 8 cents to $23.74 in recent trading. The stock is up 46% this year.

-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com

(Gustav Sandstrom contributed to this report.)

  (END) Dow Jones Newswires
  11-09-091213ET
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