Cisco to Tandberg: Higher Bid Not Likely
by John Paczkowski
Posted on November 2, 2009 at 11:20 AM PT
Looks like there may be a bit of truth to reports that Cisco would rather bail on its proposed acquisition of Tandberg than raise its bid for the videoconferencing equipment manufacturer.
Remarking today on speculation that Cisco (CSCO) would do just that, Ned Hooper, the company’s chief strategy officer, stressed that Cisco “will always act with fiscal prudence” as it pursues Tandberg. “We strongly believe our offer is a very good price for Tandberg shareholders,” Hooper wrote, adding that the time is right for the two companies to come together.
“However, no acquisition should be pursued or completed if it runs counter to the broader principles of prudence and financial fairness,” Hooper cautioned. “Given all the speculative ‘noise’ last week,” he added, “I wanted to take the time to reiterate these points because it is important to me, and to Cisco, that all of our stakeholders understand our position as we near the end of the offer period.”
Now Hooper didn’t come right out and say it, but his message here is pretty clear: Cisco believes the 38.3 percent premium it has offered to pay for Tandberg is a fair one and is not particularly interested in raising it just to please some ornery shareholders.
And time is running out. Note that Hooper concludes his missive by explicitly pointing out that the end of the offer period is approaching.
