UPDATE 5-Cisco ups Tandberg bid, expected to win approval

* Cisco raises offer 10 pct to NOK 170/share

* Says bid backed by owners of 40+ pct of Tandberg shares

* Analysts, investors see this bid succeeding

* Tandberg shares touch lifetime high, Cisco up 1 pct (Adds investor quotes, Tandberg comment, NEW YORK to dateline)

By Wojciech Moskwa and Ritsuko Ando

OSLO/NEW YORK, Nov 16 (Reuters) - Cisco Systems Inc (CSCO.O) raised its bid for Tandberg ASA (TAA.OL) 10 percent to 19 billion Norwegian crowns ($3.41 billion), a move widely expected to win over shareholders of the video conferencing company.

Cisco said on Monday its new bid of 170 crowns per share has the approval of holders of more than 40 percent of Tandberg shares, including the top two investors, OppenheimerFunds, which had opposed the original offer, and Folketrygdfondet.

That was a significant improvement from the less than 10 percent that accepted Cisco's initial 153.50 crown bid,

Analysts and investors expect the new bid, which the U.S. network equipment maker said would be its last, to win more shareholder support. Tandberg's board, which had already supported the original price, called the sweetened offer "outstanding."

Norwegian conglomerate Orkla (ORK.OL), which holds 2.2 percent of Tandberg stock, viewed the new price positively.

"We had thought that 153.50 was too low, but 170 is something we will evaluate thoroughly, and there's a good chance we will accept, although we haven't made any decision yet," portfolio manager Ole Dahl at Orkla told Reuters.

The raised bid also confirmed widespread views that the deal was too important for Cisco to drop. Cisco Chief Executive John Chambers has touted online videoconferencing as a key growth area that is on the brink of more widespread adoption.

High-quality, real-time videoconferencing can help companies cut travel costs, and Cisco says it can do more, such as helping businesses like retailers, banks and hospitals launch services from remote locations.

Tandberg is the leading videoconferencing equipment maker, and its products complement Cisco's high-end TelePresence conferencing products and its WebEx desktop video service. The Norwegian company holds 40 percent of the mid-tier market for videoconferencing, according to Wainhouse Research.

Tandberg shares rose 3.8 percent to 163.60 crowns by afternoon, after hitting a lifetime high of 167.50 crowns earlier in the day. Cisco shares rose 1.0 percent to $23.95.

"We have not yet made a decision about this offer, but at this level I believe it has a fair chance of succeeding," said Rune Selmar, director at investment group Rasmussengruppen, which owns about 0.6 percent of Tandberg's stock.