Wednesday, March 7, 2007

ARRIS Decides Not to Increase Offer for Tandberg Television

ARRIS decided not to increase its offer to acquire Tandberg Television, following the higher bid Ericsson made for the firm. Tandberg Television has therefore terminated its acquisition agreement with ARRIS. In connection with the decision, ARRIS has received a termination fee of $18 million. ARRIS also expects to realize net gains of approximately $11 - $12 million on the sale of foreign exchange contracts that ARRIS had purchased to hedge a portion of the purchase price. ARRIS estimates that it incurred approximately $9 - $10 million of expenses associated with the transaction.

  • On 28-Feb-2007, Ericsson made a public cash offer to acquire Tandberg Television for SEK 9.8 billion (US$1.4 billion), or NOK 106 in cash per share -- representing a premium of 18.2% to Tandberg's 90-day volume weighted average stock price. The bid represents a 10.4% premium over the acquisition offer made by ARRIS on 15-January-2007. Ericsson said it makes a better strategic partner for Tandberg TV because together the companies could offer a complete IPTV solution.

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