Cisco (CSCO) Faces Down Tandberg Shareholders

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By Douglas A. McIntyre Updated Published
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Cisco (NASDAQ:CSCO) claims that 84% of the shareholders of its takeover target Tandberg have voted for the sales of the company.

Cisco has said that if it does not have 90% of Tandberg shareholder support by Thursday it will either withdraw its offer or waive the 90% condition.

The holdouts among Tandberg shareholders are playing a dangerous game.

Cisco has already lifted its original bid to $3.4 billion which values the company 33% above where it traded before the offer. Cisco could make the tactical decision to walk away from its bid, watch Tandberg shares fall, and make an offer at a lower price when no other bidders have emerged. Presumably, an alternate bidder would have appeared when Cisco made its first offer.

Tandberg shareholders should take the money and run. The stock price will collapse if Cisco does indeed drop its offer.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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