Cisco raises bid for Tandberg; Lands 40% of shareholders

Cisco on Monday said that it will raise its bid for video conferencing company Tandberg to $3.4 billion, up from $3 billion. The higher offer arrived after Tandberg shareholders balked at the first bid.

In a statement, Cisco said 40 percent of Tandberg shareholders tendered shares to the networking company.

Tandberg shareholders have proven to be a tough crowd for Cisco. The rub: Cisco extended the deadline for the deal to Dec. 1 and said it will withdraw its offer if 90 percent of Tandberg shareholders don't agree to it.

Among some of the key items:

• Cisco said that Tandberg's largest shareholders, Folketrygdfondet and OppenheimerFunds, have already accepted the higher bid. That's likely to push other shareholders off the fence.
• If Tandberg doesn't take this offer Cisco "will withdraw the offer and evaluate alternative ways to expand our activities in the video communications market."
• Cisco raised the interest payable on the offer price to 3 percent from 1.75 percent.