Close
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Menu
Search
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications
    • IT Management
    • Networking

    Starent Settles Suit over Cisco Bid

    By
    Jeff Burt
    -
    November 30, 2009
    Share
    Facebook
    Twitter
    Linkedin

      Starent Networks has removed at least some of the legal hurdles in the way of Cisco Systems’ efforts to buy the company.

      Starent on Nov. 27 settled a class action lawsuit that was filed by shareholders unhappy with the proposed $2.9 billion acquisition by Cisco, which was announced Oct. 13.

      The suit, which was filed by Laborers Local 235 Benefit Funds in federal court in Delaware soon after the deal was announced, sought to block the sale, with the shareholders claiming the Cisco bid was too low and that investors were not given enough information on the offer.

      According to a Starent statement, the agreement needs to be accepted by the Delaware court. Officials with Starent, which makes wireless infrastructure equipment, said in the statement that they do not believe the company has done anything wrong, but agreed to the settlement to avoid a costly legal battle.

      In accordance with the deal, Starent will make more information available to shareholders in exchange for the lawsuit being dropped.

      Not all of the legal challenges to the deal are gone, however. There still is at least one other shareholder suit, filed in U.S. District Court in Boston by an Illinois investor, claiming that the bid by Cisco is too low.

      Cisco is looking to expand its capabilities in the mobile Internet space by buying Starent, which makes products designed for wireless service providers such as AT&T and Verizon. With the number of smartphones and other Web-connected devices in use by consumers and businesses rapidly increasing, the mobile Internet is becoming an important area for companies like Cisco, Nokia and Alcatel-Lucent.

      Cisco is predicting that global mobile data traffic will more than double every year through at least 2013.

      The Starent deal is the latest acquisition attempt by Cisco in 2009, following such purchases as Flip video camera maker Pure Digital in May for about $590 million and its current $3.4 billion bid for Norwegian video conferencing company Tandberg.

      Avatar
      Jeff Burt
      Jeffrey Burt has been with eWEEK since 2000, covering an array of areas that includes servers, networking, PCs, processors, converged infrastructure, unified communications and the Internet of things.

      MOST POPULAR ARTICLES

      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Cloud

      Why Data Security Will Face Even Harsher...

      Chris Preimesberger - December 1, 2020 0
      Who would know more about details of the hacking process than an actual former career hacker? And who wants to understand all they can...
      Read more
      Cybersecurity

      How Veritas Is Shining a Light Into...

      eWEEK EDITORS - September 25, 2020 0
      Protecting data has always been one of the most important tasks in all of IT, yet as more companies become data companies at the...
      Read more
      Big Data and Analytics

      How NVIDIA A100 Station Brings Data Center...

      Zeus Kerravala - November 18, 2020 0
      There’s little debate that graphics processor unit manufacturer NVIDIA is the de facto standard when it comes to providing silicon to power machine learning...
      Read more
      Apple

      Why iPhone 12 Pro Makes Sense for...

      Wayne Rash - November 26, 2020 0
      If you’ve been watching the Apple commercials for the past three weeks, you already know what the company thinks will happen if you buy...
      Read more
      eWeek


      Contact Us | About | Sitemap

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Property of TechnologyAdvice.
      Terms of Service | Privacy Notice | Advertise | California - Do Not Sell My Information

      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×