Ericsson Makes Bid for Norwegian Television Company

Swedish wireless equipment maker Ericsson said Monday it offered to buy Norway's Tandberg Television for 9.8 billion kronor ($1.6 billion) in cash as it tries to position itself for the convergence of the telecoms and television industries.

The company's offer is about 10% higher than one made in January by American company Arris Group.

Ericsson said buying Tandberg would allow it to offer complete networks for the fast-growing technology area of television over the Internet. It also brings Ericsson new customers such as cable and satellite operators.

Ericsson's offer is priced at 106 Norwegian kroner ($17.32) per share, compared to Friday's closing price of 100.25 kroner ($16.39).

Tandberg has now swung behind Ericsson's higher offer.

Ericsson owns 11.7% of Tandberg and said holders of another 13% have agreed to the offer.