Cisco chief strategy officer Ned Hooper has responded to agroup of Tandberg shareholders who are holding out for a better offer from thevendor.
Last Friday the threat that Cisco might be unable tocomplete its multi-billion dollar purchase of Tandberg reared its head again whenthe Oslo stock exchange halted trading in Tandberg shares after sources toldBloomberg that Cisco would walk away if it couldn't secure more than 90%backing from Tandberg shareholders.
As previously reported in MicroScope, a group of Tandberginvestors controlling around 24% of its shares refusing to play ball.
Hooper said: "Cisco's offer represents a 38.3% premium tothe closing share price on July 15, one day prior to reports of a possibletransaction. The price also represents a 102% 12 month return for Tandbergshareholders, far surpassing global market returns."
Hooper invoked Cisco's "strong record" in creating decentreturns for shareholders in firms it has acquired in the past, adding that thevendor would "always act with fiscal prudence".
Trade in Tandberg stocks resumed in the afternoon after thestock exchange found no evidence of irregularities.
"Oslo Børs has reviewed whether some participants haveaccess to different information in relation to evaluating the value of thecompany's shares. Oslo Børs has not found sufficient reasons to uphold the matchinghalt," the stock exchange said in a statement.
Cisco has until next Monday to lock up the votes it needsfor the acquisition.
Meanwhile, John Chambers dipped into his voluminous pocketsagain on Tuesday to acquire the assets of China-based set-top box builder DVN.
The $44.5m (£27.2m) deal is but a minnow compared to Cisco'srecent acquisitions, and will see Hong-Kong-listed DVN slotted into Cisco'sService Provider Video Technology Group. Cisco said the deal was mainlydesigned to boost its addressable consumer market in China and other emergingterritories.
Cisco has form in this area, having bought set-top box and broadband kitprovider Scientific Atlanta in 2005 for close to $7bn at the time.
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