Cisco Finally Wins Control of Tandberg
Vendor garners 90 percent of outstanding shares to proceed with acquisition.
Cisco Systems Inc. said that it has received acceptances from shareholders amounting to 89 percent of Tandbergs total outstanding shares and, combined with its purchase of 2.2 percent of the companys issues in November, satisfied its requirement for acquiring the Norwegian video conference systems maker.
The networking company said that the shares tendered represent about 102 million shares or 91.1 percent of the shares and voting rights in Tandberg. Cisco said that it will purchase the remaining shares of the company.
Cisco set a deadline of December 3 to complete the deal, which it had revised upward to $3.4 billion to satisfy reluctant Tandberg shareholders who argued that the vendors initial offer was below market value.
As of December 3, Cisco controlled only 89 percent of Tandbergs shares but chose to waive its requirement for 90 percent acceptance.
Our shareholders have decided to accept Ciscos offer for our company, said Fredrik Halvorsen, Tandberg chief executive.
This is a strong vote of confidence in our people, our partners and our technology. Bringing together exceptional people from both sides, we will bring more innovation to this space than either one could have done on their own, he said.
Cisco also said that the U.S. Department of Justice has requested additional information on the deal. The request is part of the regulatory process under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
The company said it will quickly respond and work cooperatively with the DOJ.
Officials said that they expect the Tandberg deal to close in the first half of 2010.
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