America's Arris Bids for Norwegian TV Firm

17 January 2007

OSLO: Norwegian digital broadcast systems manufacturer Tandberg Television is on the receiving end of a 'friendly' $1.2 billion (€928.4m; £612.9m) takeover bid by US firm Arris - a communications technology specialist.

If the bid succeeds (by no means a certainty as many investors think it undervalues the company) it will create a world leader in the voice, data and video systems market.

Arris's broadband network know-how, combined with Tandberg TV's digital video, compression and interactive television technology has the makings of a world leader.

However, the deal could founder on the rocks of an overnight surge in Tandberg's share price - ironically triggered by the bid itself - which lifted the value of the stock by 17.4%, thereby making the offer price look decidedly skimpy.

Observes Glitnir Securities analysts Arnfinn Loev-Mikkelsen: "The bid price is too low and shareholders may adopt a wait-and-see attitude. An acquisition bid should include a premium.

Quoth the companies in a joint statement: "Combining the resources and experience of Arris and Tandberg Television will produce a new company, unique in its ability to enable voice, video and data over any network and to any device.".

Tandberg's board of directors unanimously recommended its shareholders to accept the Arris offer.

Data sourced from Washington Post Online; additional content by WARC staff