Atos may have to increase offer for Gemalto; JPMorgan and Deutsche Bank advising target – report (translated)
13 DEC 2017
Shareholders in Netherlands-based digital security and services provider Gemalto [EPA:GTO] could want an increase in the EUR 46/shares offer submitted by Atos [EPA:ATO], a France-based information technology services company.
An unsourced report from French daily L’Agefi said that the offer values the target at 10 times 2018 EBITDA target, compared with a 2017 average of 18 times 2018 EBITDA target for the sector in Europe.
The report claimed that the Gemalto shareholders might see Atos' move as opportunistic, especially since shares in Gemalto plunged about 50% since the beginning of 2017 and the four profit warnings released by the target since October 2016.
Gemalto is assisted by JPMorgan and Deutsche Bank, the report noted.
The report referred to analysts at UBS who value the target at EUR 49 per shares; Analysts at CM-CIC said that other parties, such as France’s Ingenico [EPA:ING], could make a counter-offer for Gemalto.