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
Contact [email protected] for any questions or corrections.
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