Cisco has been in acquisition mode lately and has been picking up companies it deems interesting, sometimes for a hefty sum. More than a month ago, the networking giant announced its plans to acquire Norwegian video conferencing technology company Tandberg for $3 billion. The investors were apparently unimpressed by the bid, so Cisco was forced to up the bid to $3.4 billion, a sum which seems to be closer to what the shareholders want.

”Under the revised terms, Cisco will offer to purchase all the outstanding shares of TANDBERG for 170 Norwegian Kroner per share for an aggregate purchase price of approximately $3.4 billion. Cisco will also increase the interest payable on the offer price to a rate of 3.00% from a rate of 1.75%. This revised offer represents Cisco's final price for this transaction,” the statement issued by to company reads.

Cisco, mostly known for its networking hardware and services, has been steadily rising to become one of the biggest tech companies, with a special interest in the enterprise market, helped by its generous reserves of cash used for a number of strategic acquisitions. In early October, the company revealed its bid for the Norwegian company, but the $3 billion offer was deemed to low by most of Tandberg's shareholders and subsequently rejected it.

Now, Cisco has come back with a new offer valuing Tandberg at $3.4 billion and the US company says some 40 percent of Tandberg's shareholders have pre-approved the latest bid. It has to get 90 percent approval for the deal to pass. The investors now have until December 1, 2009, to decide if they accept the offer or not. Cisco has made its interest in the video conferencing market more than clear, it already has some high-end, enterprise-grade products on offer, but it says that it will not make another bid if this one doesn't go through. “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 company also stated.