Gemalto spurns €4.3bn proposal. So we're in with a chance then, says Atos

You say you're not into us. Let's 'dialogue' over dinner

Dutch security biz Gemalto has spurned outsourcing giant Atos' unsolicited offer of a €4.3bn (£3.79bn) buyout describing the proposal as "opportunistic".

The proposed deal was announced publicly on Monday, with the card-security and SIM-flinger having until tomorrow to respond.

Sharing its reply to Atos boss Thierry Breton, Gemalto said Atos' proposal was "opportunistic", and "significantly undervalue[d] the company" to the tune of 27 per cent at a time when it had "stabilised its performance following a challenging period." Over the past year, Gemalto has issued a series of profit warnings.

It went on to describe it as "not reflective of a truly friendly and collaborative approach", as Atos had previously described its offer.

According to the letter sent by chairman of the board Alex Mandl and CEO Phillipe Vallée, Atos had announced the offer without consulting Gemalto.

According to the missive, Atos had indicated that they were filing papers with the Authority for the Financial Markets (the Dutch equivalent of the UK Financial Conduct Authority or the US Securities and Exchange Commission) in preparation, whether or not Gemalto had agreed to the deal, which Atos has confirmed to us.

Gemalto said the company's future prospects and its stakeholders' interests would be better served by remaining independent.

Atos responded in a statement confirming that the company "will proceed with the proposed transaction and is preparing with its advisors all regulatory filings", including its papers sent to the Dutch AFM. It said that it had "noted today the announcement...regarding its friendly proposal", and maintained that "the offer had received strong support" and "presents an attractive opportunity" for Gemalto. The company reinforced "its readiness to open discussions and is confident that Gemalto’s Board of Directors will engage in a constructive direct dialogue with respect to the offer."

As a result of the knockback, Atos shares have fallen 2.8 per cent since Thursday morning.

Responding to a question from Reuters asking if Gemalto would consider changing its mind if Atos revised the offer, Vallée said: “Our answer is clear. I can’t foresee the future.” ®

Other stories you might like

  • Prisons transcribe private phone calls with inmates using speech-to-text AI

    Plus: A drug designed by machine learning algorithms to treat liver disease reaches human clinical trials and more

    In brief Prisons around the US are installing AI speech-to-text models to automatically transcribe conversations with inmates during their phone calls.

    A series of contracts and emails from eight different states revealed how Verus, an AI application developed by LEO Technologies and based on a speech-to-text system offered by Amazon, was used to eavesdrop on prisoners’ phone calls.

    In a sales pitch, LEO’s CEO James Sexton told officials working for a jail in Cook County, Illinois, that one of its customers in Calhoun County, Alabama, uses the software to protect prisons from getting sued, according to an investigation by the Thomson Reuters Foundation.

    Continue reading
  • Battlefield 2042: Please don't be the death knell of the franchise, please don't be the death knell of the franchise

    Another terrible launch, but DICE is already working on improvements

    The RPG Greetings, traveller, and welcome back to The Register Plays Games, our monthly gaming column. Since the last edition on New World, we hit level cap and the "endgame". Around this time, item duping exploits became rife and every attempt Amazon Games made to fix it just broke something else. The post-level 60 "watermark" system for gear drops is also infuriating and tedious, but not something we were able to address in the column. So bear these things in mind if you were ever tempted. On that note, it's time to look at another newly released shit show – Battlefield 2042.

    I wanted to love Battlefield 2042, I really did. After the bum note of the first-person shooter (FPS) franchise's return to Second World War theatres with Battlefield V (2018), I stupidly assumed the next entry from EA-owned Swedish developer DICE would be a return to form. I was wrong.

    The multiplayer military FPS market is dominated by two forces: Activision's Call of Duty (COD) series and EA's Battlefield. Fans of each franchise are loyal to the point of zealotry with little crossover between player bases. Here's where I stand: COD jumped the shark with Modern Warfare 2 in 2009. It's flip-flopped from WW2 to present-day combat and back again, tried sci-fi, and even the Battle Royale trend with the free-to-play Call of Duty: Warzone (2020), which has been thoroughly ruined by hackers and developer inaction.

    Continue reading
  • American diplomats' iPhones reportedly compromised by NSO Group intrusion software

    Reuters claims nine State Department employees outside the US had their devices hacked

    The Apple iPhones of at least nine US State Department officials were compromised by an unidentified entity using NSO Group's Pegasus spyware, according to a report published Friday by Reuters.

    NSO Group in an email to The Register said it has blocked an unnamed customers' access to its system upon receiving an inquiry about the incident but has yet to confirm whether its software was involved.

    "Once the inquiry was received, and before any investigation under our compliance policy, we have decided to immediately terminate relevant customers’ access to the system, due to the severity of the allegations," an NSO spokesperson told The Register in an email. "To this point, we haven’t received any information nor the phone numbers, nor any indication that NSO’s tools were used in this case."

    Continue reading

Biting the hand that feeds IT © 1998–2021