NFC TIMES Exclusive Insight – The board of struggling French smart card and security vendor Gemalto has rejected an all-cash €4.3 billion (US$5.08 billion) takeover bid by France-based IT services and consulting company Atos, calling Atos’ €46-per-share bid “opportunistic,” and contending that it “significantly undervalues” the company, among other objections.
Atos, in an announcement late Wednesday, said it would not back down, contending that its bid, “reflects fully the fair value of Gemalto and presents a substantial premium” of 42%. Atos said it was open to talks, but it remains to be seen whether Gemalto’s solid rejection of the offer is a negotiating ploy or signals real discord–which could lead to a hostile takeover attempt by Atos.
Gemalto’s share price had fallen by more than 40% this year alone before Atos’ takeover attempt was made public Monday night. But Gemalto, in a lengthy statement posted after markets closed Wednesday and in a letter addressed to Atos’ chairman and CEO Thierry Breton, said the board believes the company is “best positioned to grow successfully on a standalone basis and create long-term value for its stakeholders, including its shareholders.”