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US networking giant Cisco has made what it calls a final bid for video conferencing group Tandberg, after shareholders snubbed the firm’s initial $3 billion offer.
Despite Cisco’s first offer for Tandberg being at a 11 per cent premium of the target’s share price, more than 90 per cent of Tandberg shareholders are thought to have snubbed the offer.
Cisco is now offering $3.4 billion for Tandberg.
"The New Offer represents the final price for this transaction," the firm said.
This new offer has already been backed by two of Tandberg’s biggest shareholders, who together hold over 40 per cent of Tandberg stock.
"If [Cisco] does not achieve the desired level of acceptances, [it] will withdraw the new offer and evaluate alternative ways to expand Cisco’s activities in the video communications market," the firm warned.
Tandberg shares, which jumped after the initial Cisco offer, rose again 4.8 per cent after the second bid was made.
Prior to the Cisco takeover bid, buzz around Tandberg used to be centred on the firm’s TelePresence technology; a videoconference feature that can display a 3D image of a remote caller.
Cisco will look to integrate this business arm and continue developing it, with soon-to-be former Tandberg CEO Fredrik Halvorsen heading up the group.
