Not So Fast, Cisco

2:25 PM -- It's being widely reported today that several small stakeholders in Tandberg ASA (OSE: TAA) are turning thumbs-down to the $3 billion acquisition offer from Cisco Systems Inc. (Nasdaq: CSCO). (See Cisco Bets $3B on Tandberg .)

Which is all very quaint, until you read the passage in the Financial Times that says Cisco needs a 90 percent "yes" vote to take over Tandberg. With the protesting group representing 24 percent of all shares, it's looking as if the initial deal is all but dead, unless Cisco can calm these folks down.

One obvious option is for Cisco to raise the price, despite its official statement today saying executives believe the offer to be fair.

What's so bad about $3 billion? The shareholders think Tandberg is worth more. Cisco offered a premium to Tandberg's stock price -- which had already escalated on takeover rumors -- but the FT points out one interesting metric: Cisco's offer amounts to 23 times Tandberg's earnings estimates for next year -- a smaller multiple than Cisco gave to WebEx, its last big acquisition.

— Craig Matsumoto, West Coast Editor, Light Reading

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