STOCKS NEWS EUROPE-Tandberg gains as Cisco deal raised

Shares Tandberg TAA.OL surge more than 4 percent after U.S. network gear manufacturer Cisco (CSCO.O) raises its bid for the Norwegian video conferencing equipment maker, with traders saying the deal, which has backing of holders of more than 40 percent of its shares, now looks set to go ahead.

Panta Capital, a small London firm advising on merger arbitrage that earlier this month wrote an open letter criticising the bid, says the new offer was "fair" and likely to succeed.

"I think it's a done deal now," Peter Germonpre of Panta tells Reuters. Germonpre says the new offer is more in line with valuations such as that of listed peer Polycom Inc (PLCM.O).

He adds the small group of shareholders whose views he had represented in his earlier letter would be much more inclined to tender their shares.

A person familiar with the matter says the new offer followed a weekend of telephone calls made by Cisco officials and Cisco's financial advisers at Carnegie and Lazard to canvass shareholder opinions.

For more on this story, please click on [ID:nLG339355].

Reuters Messaging rm://simon.falush.reuters.com@reuters.net

rm://quentin.webb.reuters.com@reuters.net