Cisco raises Tandberg bid to £2bn

Cisco has offered an extra £400m to Tandberg shareholders

Cisco has raised its bid for videoconferencing firm Tandberg, having said previously that its price was a fair one.

In a possible attempt to speed up the process, Cisco said today that it had raised its offer from £1.8bn to just over £2bn, and that it had the support of 30 per cent of Tandberg's shareholders.

However, Cisco added that it will withdraw its offer completely if this latest bid is rejected, and look for alternatives elsewhere. The company has already described its original offer as "a very good price for Tandberg shareholders".

"Cisco believes that this revised offer remains consistent with the principles of prudence and financial fairness. If Cisco does not achieve the desired level of acceptances, the company will withdraw the offer and evaluate alternative ways to expand our activities in the video communications market," the firm said in a statement.

Cisco has also extended its deadline for a decision from Tandberg shareholders to 1 December.

The firm remains keen to gain a chunk of an expected $34bn (£20bn) a year collaboration market, and apparently will not rest until it makes a purchase.