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07 Dec 2009
Cisco has taken a big step towards finalising its $3.4bn (£2.08bn) takeover of videoconferencing vendor Tandberg after getting its hands on more than 90 per cent of company shares.
The networking goliath announced on Friday that it had bagged a 91.1 per cent stake in Tandberg. This takes it above the 90 per cent threshold at which it can mandatorily squeeze out remaining shareholders. Cisco firm has indicated it intends to undertake the compulsory acquisition.
Seemingly the final obstacle for the deal to surmount is the clearance from the US Department of Justice (DoJ). Cisco revealed on Thursday that it had received a 'second request' from the DoJ, which is seeking information to allay possible antitrust concerns.
Further reading
The course of Cisco's acquisition of the Norwegian firm has run far from smoothly, after a $3bn agreement was initially announced in September. A month later, the deal looked in serious jeopardy because about a quarter of Tandberg shareholders were still digging their heels in and hoping for a better price. In November, the offer was upped by about $400m.
Another vendor consolidation saga which has crept closer to fruition is Avaya's takeover of Nortel Enterprise Solutions. The New Jersey-based firm announced today that the $900m buy-out of its fallen rival has been given the green light by the Canadian minister of industry.
The deal has now been given the regulatory thumbs-up by the US, Canada and the European Union and remains on course to be closed before 2009's end. Avaya chief executive Kevin Kennedy welcomed today's news.
"Avaya is pleased with today's approval and appreciates the rigour of the Investment Canada Act review process and the diligent efforts made by officials at Industry Canada, the Federal Government and the Ontario Provincial Government," he said.
"With this important milestone now behind us, we look forward to finalising a transaction that we believe will create inherent benefit and value in Canada and worldwide."
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