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ARRIS tenders Tandberg offer, reducing speculation of rival bids

Thu, 02/15/2007 - 6:31am
Jeff Baumgartner, CED

ARRIS has formally launched a tender offer for Tandberg Television for roughly $1.2 billion, about the same aggregate pricetag disclosed when the deal was first announced in mid-January.

Reuters noted that Tandberg shares have been trading above the offer price, likely indicating that investors expected ARRIS to sweeten its bid or that a rival bid could emerge.

The voluntary tender offer period is scheduled from Feb. 15 to March 15, 2007. The offer values Tandberg at the exchange rate as of Jan. 12, 2007.

Analysts have lauded the marriage, citing the fact that the two companies provide complementary technologies and services, and that it positions them to compete with the likes of Motorola Inc. and Cisco Systems.

ARRIS and Tandberg expect to close the deal by Q2 2007, as the board of directors of Tandberg has unanimously recommended the offer to its shareholders. The deal requires approval from at least 90 percent of Tandberg shareholders.

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