After one month ago Cisco announced that will offer $3 billion for Tandberg, today there are rumors that this acquisition will not work as expected. It seems that after Tandberg’s board of directors recommended to accept the price offered, for 153.5 Norwegian Kroner per share, now this still requires approval by 90 percent of the company’s shareholders by 9th of November.
The problem get more complicated as shareholders, representing 24 percent of Tandberg’s shares, don’t plan to accept the deal, with arguments that Tandberg can succeed on it’s own. Another opinion would be that Cisco, or another bidder, has to offer a bigger price per share.
Checking now (4th of November 2009) the stocks price for Tandberg is aprox. 149.50 Norwegian Kroner per share, which is less that Cisco,s offer. Cisco’s Chief Strategy Officer Ned Hooper is reserved in regard to Cisco’s position about a new offer considering the actual price fair and admitting that the company will act with fiscal prudence.
In any way this dispute and the possibility that Cisco will not acquire Tandberg made a lot of people thinking about Cisco’s place in future of video communication.