UPDATE 2-Cisco extends offer period for Tandberg bid

By Richard Solem and Ritsuko Ando OSLO/NEW YORK, Nov 9 (Reuters) - Cisco Systems Inc on Monday extended its $3 billion tender offer for Tandberg ASA by nine days, after some shareholders of the Norwegian videoconferencing company demanded a higher price. Cisco, the largest U.S. network equipment maker, said it would extend its offer, originally due to expire on Monday, to Nov. 18, and that the terms and conditions would remain unchanged until then. Investors holding about 30 percent of Tandberg's shares had called for a offer higher than the 153.50 crowns per share that Cisco offered. "We believe that we're paying a fair price for a quality asset," a Cisco spokeswoman said after announcing the extension. Cisco Chief Executive John Chambers said last week that he believed the company could close the Tandberg deal but also raised the prospect of walking away, saying that there was no such thing as a "must have" deal. Few analysts, however, expect Cisco to drop its bid as it has repeatedly touted online videoconferencing as a key growth area. Some said they expect the price may be raised to around 160 or 170 crowns. Tandberg shares were up 0.53 percent at 151.80 crowns on Monday. Cisco shares were down 0.25 percent at $23.76. Nordea analyst Andre Adolfsen, who covers Tandberg, said the extension was expected, given that Cisco could not get the support it needed. Cisco made its offer for Tandberg -- its first attempt at a public European takeover -- conditional on 90 percent acceptance. "Now they have 10 days... to persuade those who are left," Adolfsen said. Cisco did not disclose how many shares were tendered before the deadline was extended. A spokesman for Cisco's Norwegian agent, Carnegie, told Reuters that information about this would be released on Tuesday. Analysts have said Cisco's offer, regardless of when and how it closed, could trigger more deals involving video conferencing companies like No. 2 player Polycom Inc. Other technology companies like Hewlett-Packard Co also offer high-end video conferencing. Cisco could keep extending the deadline and continue to negotiate with shareholders for a maximum of 10 weeks, or until mid-December. ($1=5.627 Norwegian Crown) (Reporting by Richard Solem and Joergen Frich in Oslo and Ritsuko Ando in New York; Editing by Dan Lalor, Tiffany Wu and Steve Orlofsky) Keywords: TANDBERG CISCO/ ([e-mail]; [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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