ARRIS Will Not Extend or Increase Offer for Tandberg Television
March 08 2007 - 1:32PM
PR Newswire (US)
SUWANEE, Ga., March 8 /PRNewswire-FirstCall/ -- ARRIS Group, Inc.
(NASDAQ:ARRS) today announced that it will not extend or increase
its offer for the shares of Tandberg Television. Following the
ARRIS offer, Ericsson made a higher competing offer that the Board
of Directors of Tandberg Television subsequently endorsed. At the
same time, Tandberg Television terminated the Transaction Agreement
with ARRIS. ARRIS has received a termination fee of $18 million.
ARRIS also expects to realize net gains of approximately $11 - $12
million on the sale of foreign exchange contracts that ARRIS had
purchased to hedge a portion of the purchase price. ARRIS estimates
that it incurred approximately $9 - $10 million of expenses
associated with the transaction. Bob Stanzione, Chairman and CEO of
ARRIS stated, "Although the Tandberg Television acquisition was a
desirable transaction, our offer was fully priced and we believe a
transaction at higher price would not be in the best interests of
our shareholders." Stanzione further commented, "ARRIS has used a
disciplined approach in its acquisition strategy and will continue
to explore possible acquisitions and partnerships to expand and
diversify our products and technologies thereby enhancing
shareholder value. We continue to be exceptionally well positioned
for future growth in the high speed data and telephony markets and
we will continue to execute on our plans to enhance our position in
those exciting growth markets." About ARRIS ARRIS provides
broadband local access networks with innovative high-speed data and
telephony systems for the delivery of voice, video and data to the
home and business. ARRIS complete solutions enhance the reliability
and value of converged services from the network to the subscriber.
Headquartered in Suwanee, Georgia, USA, ARRIS has design,
engineering, distribution, service and sales office locations
throughout the world. Information about ARRIS' products and
services can be found at http://www.arrisi.com/. DATASOURCE: ARRIS
CONTACT: Investor Relations, Jim Bauer of ARRIS, +1-678-473-2647,
or Web site: http://www.arrisi.com/
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