Editor's Note: I think they are smart to play hard to get with the 800 pound gorilla we know as Cisco Systems. With the video conferencing market growing and them being a dominant player along with Polycom, they should not sellout at the first offer. They look to have a good business model, quality product and focus on providing a good product in that market. Hopefully Polycom will take note and not sellout to any firm unless it is in the best interest of Polycom as a brand and its shareholders.
Wall Street Journal - Shareholders representing 24% of the shares in Tandberg ASA on Thursday rejected Cisco Systems Inc.'s recent $3 billion offer for the video-conferencing-equipment maker, fueling hopes that the U.S.-based company might raise its bid. Swedish brokerage SEB Enskilda, which represents the 21 shareholders in the Norwegian company, said it has communicated their position to Cisco.
"The shareholders are convinced that Tandberg will generate strong returns as an independent company, but are open to evaluate a higher offer from Cisco or a third party," SEB Enskilda said. The 21 shareholders include both international and Norwegian, and both long-term and new owners of Tandberg stock, it said.
A Cisco spokeswoman declined to comment on the announcement, citing a continuing tender process. The company reiterated that it believes it is paying a fair price for Tandberg.
Tandberg wasn't immediately available to comment.
Cisco agreed to buy Tandberg for around $3 billion, or 153.50 Norwegian kroner a share, on Oct. 1 . It said Tandberg's board recommended the all-cash tender to its shareholders, and that the offered price was 11% above Tandberg's closing price the previous day and 25% above a three-month average price for the stock.
Cisco has recently pushed into 30 new business areas, including video-conferencing systems, which it says could each produce $1 billion a year in revenue.
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