Cisco confirms 90% stake in Tandberg

7 December 2009

Cisco has had its bid to acquire more than 90 per cent of the shares in Tandberg approved, the company has announced.

According to the provider of networking equipment, 99.8 million shares - the equivalent of 89.1 per cent of the Norwegian videoconferencing vendor - have been tendered.

Cisco now owns 91.1 per cent or 102 million shares of Tandberg, including the 2.23 million shares it purchased on November 18th and 20th.

Hogne Tyssoy, fund manager at Holberg Funds, told Reuters: “Cisco is one of a few companies internationally that can take the company further to another level.”

The acquisition and comments follow initial delays surrounding the deal - nearly 24 per cent of Tandberg’s shareholders rejected the company’s first bid, claiming that the company was worth more.

Cisco’s initial offer of $3.1 billion made in October was increased by $300 million to $3.4 billion.

Meanwhile, the company has recently completed the acquisition of SafeScan, a provider of software security solutions.

The move follows Cisco’s takeover of IronPort, another company specialising in offering content security.

By Jim Ottewill

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