Cisco's Nordic Gap
The signs are, though, that Cisco isn't going to walk away from this $3.4 billion deal, and will likely proceed whether it reaches the 90 percent acceptance level or not. Cisco says it now controls 84 percent of Tandberg's outstanding shares, and will announce whether it has achieved the 90 percent condition level at 5:30 p.m. CET today.
But, it adds, if that target has not been reached, "Cisco will determine whether to withdraw the offer or waive this condition," and won't be extending the deadline further.
EuroBlog doesn't see the "withdraw" option coming into play. CEO John Chambers wants Cisco to be the go-to company for two key capabilities: collaboration and video. "Video is the killer application," he told journalists recently, and videoconferencing expert Tandberg strengthens Cisco's position in both of those two key areas. (See ITU: Cisco's Chambers Hints at More M&A.)
Tandberg's share price stood at NOK164.30 (US$29.40) on the Oslo exchange Wednesday morning, up 1.8 percent.
— Ray Le Maistre, International News Editor, Light Reading