Cisco's Tandberg Offer Hits Radvision

TEL AVIV (TheStreet -- Cisco's(CSCO Quote) decision to increase its bid for Norwegian videoconferencing specialist Tandberg forced down shares of partner Radvision(RVSN Quote) on Monday.

Radvision's stock dipped 43 cents, or 6.13%, to $6.59 , despite a broader rally in tech stocks that saw the Nasdaq gain 1.12%. Cisco is the Israeli firm's largest customer, reselling Radvision's videoconferencing technology.

The networking giant finally bowed to pressure from Tandberg shareholders Monday, raising its bid from $3 billion to $3.41 billion, and extending the acceptance period from Nov. 18 until Dec. 1.

The San Jose, Calif.-based firm needs to gain the approval of 90% of Tandberg shareholders to clinch the deal, and announced that more than 40% of shareholders have now backed the acquisition

Cisco comfortably beat Wall Street's estimates in its recent first-quarter results, citing the beginning of an upswing that could help boost the tech sector. With cash and investments of $35.4 billion burning a hole in his pocket, CEO John Chambers struck an upbeat tone during the company's recent investor meeting.

The CEO also explained that there is a lot "a lot of give and take" in deals such as the potential Tandberg combination, and added that he was confident of completing the acquisition. Cisco's stock crept up 25 cents, or 1.04%, to $23.96 Monday.

Shares of Tandberg rival Polycom(PLCM Quote), however, dipped in early Monday trading, falling 11 cents, or 0.46%, to $23.78.

Cisco Kicked Off M&A Action

There has been speculation that Polycom would make an attractive acquisition target, with Avaya touted as a possible suitor.