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Amsterdam-based Sim card manufacturer Gemalto has rejected the €4.3bn takeover proposal by larger rival Atos.

Gemalto said on Wednesday after market close that the unsolicited offer significantly undervalues the company and fails to provide a compelling strategy versus Gemalto’s standalone prospects.

Atos revealed on Monday evening it had submitted an all-cash offer of €46 a share for Gemalto on November 28. That represents a 42 per cent premium to Gemalto’s closing price on December 8, according to Atos.

Gemalto, which relies on Sim cards for about a third of revenues, has floundered in the face of slowing demand for new phones around the world. In July, in the third profit warning in six months, the group said operating profits would be between €200m and €230m in the second half of the year, or a third lower than its previous guidance. It also revealed a €420m writedown because of “deteriorated prospects” in the market.

Shares in Gemalto soared 33.5 per cent on Tuesday after Atos revealed its takeover offer.

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