Tandberg shareholders have rejected a $3 billion bid by Cisco to buy the Norwegian video conferencing equipment maker, apparently looking for a higher offer from Cisco or an-other company. They also appear ready to keep the company independent, according to a Swedish brokerage that represents almost two dozen shareholders. Cisco officials must now decide whether to up their bid or cut off the pursuit of Tandberg, which they hope will boost their telepresence capabilities.
Shareholders of Tandberg reportedly have rejected a $3 billion offer
from Cisco Systems for the Norwegian video conferencing equipment
maker, apparently holding out for a higher bid from the networking
giant or another company.
According to SEB Enskilda, a Swedish brokerage that represents 21
Tandberg shareholders, investors who hold 24 percent of the shares in
Tandberg turned down Cisco's offer
early Oct. 15, two weeks after Cisco tendered the offer.
In a statement to the Oslo Stock Exchange, SEB Enskilda said that
the shareholders "are convinced that Tandberg will generate strong
returns as an independent company, but are open to evaluate a higher
offer from Cisco or a third party."
Cisco representatives have declined comment on the shareholder decision, citing an ongoing tender offer.
Video conferencing has been a key focus for Cisco, which has made it
one of more than 30 market segments-or "adjacencies," as officials have
called them-that the company's target, each one of which officials say
could become a $1 billion business.
Cisco CEO John Chambers has talked about video conferencing as a key
technology that will increase collaboration among disparate groups
while helping reduce travel expenses. Cisco itself uses
teleconferencing extensively for major corporate meetings and to launch
new products as an alternative to spending the money to fly people in
from around the world.
Tandberg has created its Total Telepresence product line, what
officials call an "immersive" video conferencing experience that
includes 65-inch screens, distinctive blue lighting and other features
to create an environment that feels as through all the participants are
in the same room, rather than spread out around the globe.
The company earlier this year rolled out its T3 offering for meetings among large numbers of people. On Oct. 14, Tandberg unveiled its T1 offering
, a product designed for smaller meetings or regional offices that offers the same features as the T3.
Tandberg is one of several major acquisitions Cisco is looking to
make as it aggressively expands beyond its networking roots. Two weeks
after making its all-cash bid for Tandberg, Cisco Oct. 13 announced a
$2.9 billion cash offer for Starent Networks
, a mobile infrastructure company. Cisco is looking to grow is capabilities in the burgeoning mobile Internet space.
During a conference call regarding the Starent bid, Cisco officials
said the company would continue to aggressively pursue acquisitions to
complement internal innovation and partnerships.