Tuesday, November 17, 2009

Kudos to the taa shareholders

Wow...again...wow! I honestly thought it was a bluff. Who in their mind would want to try to bluff Cisco to increasing the bid for a buyout...but they did. CSCO's M&A is very successful. They've bought at least 100 companies:

http://investor.cisco.com/releasedetail.cfm?ReleaseID=424298

Lets say, they are no dummies. but...looks like CSCO is giving up another 400M.

I honestly thought that CSCO would walk away and call their bluff. You have to look at it this way, they are going to buy another 100 companies...TAA is just one of many... when this is your MO, you cant show fear. This deal could affect not only how CSCO prices acquiring companies, but also how acquired companies will negotiate for years to come. That $400M could turn into $Bs of dollars in extra costs for future acquisitions.

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