Cisco ups the ante on TANDBERG to $3.4B

Looks like the TANDBERG is worth more to Cisco after all. After toying with the idea of walking away from the table, the networking giant who has been focusing on telepresence and video of late, has come back with a higher bid in hopes of securing the approval of the investors who originally rejected the initial bid. The new bid raises the offer from $3 billion to $3.4 billion.

Cisco Systems made an offer to buy TANDBERG for $3 billion on Oct. 1, in an attempt to bring more video technology in house, but the deal was not approved by all the parties involved. TANDBERG's shareholders had rejected Cisco's bid as too small, and as the days dragged on Cisco was only able to secure 9.37 percent of the shareholders' consent under the original bid. Cisco needs 90 percent for the deal to go through. In an attempt to close the deal, Cisco suggested that they might walk away since their bid was the result of careful risk-reward analysis. The majority of TANDBERG's shareholders didn't budge.

The TANDBERG board seems supportive of the new bid. "We believe this is an outstanding offer for our shareholders," said Jan Chr. Opsahl, Chairman of TANDBERG in a statement. "The TANDBERG Board of Directors unanimously recommends this offer to shareholders." With the new bid, Cisco has 40 percent of the shareholders on board so far.

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