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By Wojciech Moskwa and Richard Solem
OSLO, Nov 2 (Reuters) - Cisco Systems Inc's $3 billion bid for Norwegian video conferencing equipment maker Tandberg ASA is fair, a consultant's report commissioned by Tandberg said on Monday.
The report, commissioned in line with Norwegian practice for external consultants to be commissioned to evaluate takeover bids, contradicts the view of some Tandberg shareholders who have said the offer is too low.
Yet such consultancy reports often do not hold much sway with investors, instead being potentially more significant as courtroom ammunition if takeovers end up in a legal battle.
Tandberg shares, which for weeks have been trading above or close to Cisco's 153.50 crowns-per-share-offer, were down 0.9 percent to 152.40 crowns by 1327 GMT, against a 0.8 percent drop on Oslo's main index.
"It is of our opinion that the terms of the offer are fair from a financial point of view, so far as the shareholders of Tandberg as concerned," Ernst & Young said in the report.
A person familiar with the matter told Reuters last week Cisco Systems was mulling various options, including withdrawing its bid or raising it, after a group of Tandberg shareholders looked set to block the deal unless its terms were sweetened.
The takeover, which needs approval from 90 percent of Tandberg shareholders, has been approved by Tandberg's board. (Editing by David Holmes)