Cisco's Tandberg Deal Hits a Snag

With companies like Hewlett-Packard(HPQ), Apple(AAPL), Microsoft(MSFT ) and Huawei, all ramping up their video conferencing strategies, few observers were surprised by Cisco's Tandberg bid.

The networking giant had hoped the bid would get regulatory approval by the first half of next year.

With cash and investments of $35 billion exiting its recent fourth quarter, Cisco can certainly afford to increase its Tandberg bid. The initial deal was seen as boosting sales of the company's core networking products, and it also forced down shares of Tandberg rivals Polycom(PLCM) and Radvision(RVSN).

Polycom has itself been touted as a potential acquisition target, with Avaya mentioned as a possible suitor.

Shares of Polycom dipped 30 cents, or 1.11%, to $26.70, in early trading Thursday, although Radvision's shares climbed 26 cents, or 4.26%, to $6.37. Cisco's stock slipped 17 cents, or 0.70%, to $24.20, shortly after the market opened, mirroring the broader tech sector as the Nasdaq fell 0.35%.

-- Reported by James Rogers in New York

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