Gemalto drops bid for Wavecom

By Lisa Kerner

Charlotte, N.C., Dec. 3 - Gemalto NV said it will not raise its bid for Wavecom SA and will terminate its tender offer for the company.

On Tuesday, Wavecom announced it would combine with Sierra Wireless, Inc.

Sierra will make a cash offer of €8.50 per ordinary share of Wavecom, and €31.93 per Oceane convertible bond, for a total purchase price of about €218 million, it was previously reported.

The transaction is expected to close in the first quarter of 2009, after which Wavecom will operate as a Sierra Wireless business unit based in Paris.

In October, Wavecom's board determined that Gemalto's €7.00-per-share offer for the company was not in the best interest of Wavecom or its shareholders.

Gemalto, a Meudon, France, digital security solutions provider, recently modified the terms of its offer for Wavecom, valuing each Wavecom Oceane at €31.30 plus accrued interest.

"As part of its mid to long-term strategy Gemalto has several options to grow in the M2M (machine-to-machine) market and in others," Gemalto chief executive officer Olivier Piou said in a news release.

"We do not intend to bid at a price that would not be in the best interests of Gemalto and its shareholders," Piou added.

Based in Richmond, B.C., Sierra provides wireless wide area modem solutions for the mobile computing, rugged mobile and M2M markets.

Wavecom is an Issy-Les-Moulineaux, France-based wireless communications provider.

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