Gemalto rejects Atos takeover bid

Slideshow ( 2 images )

PARIS (Reuters) - Gemalto GTO.AS, the world's largest maker of chips found in mobile phones and credit cards, on Wednesday rejected a takeover bid from French technology consulting firm Atos ATOS.PA, saying the 4.3 billion euro offer undervalued the company.

The bid came earlier this week as Gemalto is under pressure after posting four profit warnings in a year and having missed a chance to strengthen its security business through a large acquisition.

“We believe that Gemalto - the world leader in digital security - is best positioned to grow successfully on a standalone basis and create long term value for its stakeholders, including its shareholders,” Gemalto’s management wrote in a letter to Atos CEO Thierry Breton.

They added that Atos’ offer “significantly undervalued” Gemalto because its share price did not yet reflect its growing position in businesses like cybersecurity.

Reporting by Leigh Thomas, editing by David Evans