Ericsson bites off more of Tandberg

L.M. Ericsson announced that it has completed its public cash offer to acquire all remaining shares of Norway’s Tandberg Television. A finalized settlement for shares submitted in the offer is expected to close this week.
Immediately following the settlement, Ericsson plans to proceed with a mandatory offer for the remaining shares in Tandberg as required by the Norwegian Securities Trading Act, the company said. Following the transaction, Ericsson intends to de-list Tandberg Television shares from the Oslo Stock Exchange.
The development comes after the company’s hostile move to acquire Tandberg with a $1.4 billion bid in cash in late February. The Swedish infrastructure company, which is moving aggressively into the digital content space, topped a previous offer from Arris Group Inc., an Atlanta-area provider of cable equipment.
It’s the latest in a series of aggressive moves by Ericsson to expand into digital content. The firm operates mobile music services for several European and Asian carriers, and earlier this year unveiled a deal to bring Turner Broadcasting System content to wireless handsets.
Ericsson already owned a 12-percent stake in Tandberg before the bid, which netted $12.1 million in the fourth quarter on sales of $85.3 million.
Shares of Ericsson inched upward 15 cents to $38.70 on the news.