Monday, November 16, 2009

Monday Morning

US stocks have opened positive, taking a cue from overseas markets. The DJIA is +63 points a few minutes into trading. The index is getting a boost from Exxon Mobil, up 1.6% after being highlighted as a good value by Barron's over the weekend.

After lukewarm investor response to its initial offer, Cisco (CSCO) boosts its buyout offer for Norway's Tandberg by about 11%.

Under the revised terms, Cisco will offer to purchase all the outstanding shares of TANDBERG for 170 Norwegian Kroner per share for an aggregate purchase price of approximately $3.4 billion. Cisco will also increase the interest payable on the offer price to a rate of 3.00% from a rate of 1.75%. This revised offer represents Cisco's final price for this transaction.

Shareholders representing in aggregate more than 30% of the outstanding shares, including TANDBERG'S largest shareholders Folketrygdfondet and OppenheimerFunds, have pre-accepted this offer based on this new price. These shares combined with the previously announced shareholder acceptances bring the total to in excess of 40% of the outstanding shares committed to the transaction.

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