Arris bids $1.2 bln for Norway's Tandberg TV

OSLO (Reuters) - U.S. communications technology firm Arris on Monday bid $1.2 billion in cash and shares to acquire Norwegian digital broadcast systems maker Tandberg Television, the two companies said.

The takeover, if successful, will create a leader in the market for voice, data and video systems by combining Arris's broadband network know-how with Tandberg TV's digital video, compression and interactive television technology, they said.

Shares in Tandberg TV soared as much as 17.4 percent to a six-month high of 101 crowns before easing back to 99.9 crowns by 1316 GMT, still beyond Arris's bid of 96 crowns per Tandberg TV share.

Analysts said the jump may force a higher bid or even derail the offer, which must be accepted by at least 90 percent of Tandberg TV shareholders to be binding.

"The bid price is too low and shareholders may adopt a wait-and-see attitude," said Arnfinn Loev-Mikkelsen, an analyst at Glitnir Securities, adding that the bid price was roughly equal to what he sees as Tandberg TV's fair value.

"An acquisition bid should include a premium," he added.

"They may have to raise the bid to gain necessary acceptance," Danske Equities analyst Hallgeir Hollup said, adding that a rival bid may be on the cards.

Tandberg TV said its board of directors unanimously recommended that shareholders accept the Arris offer.

"The 96 crown offer price represents a substantial premium of 47 percent to Tandberg Television's 90 trading day average share price," Tandberg Television Chairman Jan Christian Opsahl said in the statement.

The transaction is expected to be completed in the second quarter of 2007 and is subject to regulatory approvals.

The offer price consists of 80 crowns in cash and 16 crowns in Arris shares, although Arris can increase the cash portion of the offer at its discretion, the companies said.

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