Hi Guys,
I solved the issue. It was the local dial-plan on the Cisco SPA series phone it was set to *xx and as soon as we entered *77 it dialed without waiting for the extension after. Simply adding *xxxx allowed us to transfer calls, however the call pickup for any line will not work by dialing *87 we now have to be specific with what extension we which to pickup after *87xx.
Thanks for your response.