PARIS — Gemalto SA (Meudon, France) has thrown in the towel and announced it will not raise its bid for Wavecom SA (Issy-Les-Moulineaux).

This follows repeated rejections by Wavecom of the unsolicited tender offer by Gemalto to acquire its outstanding shares.

This also comes one day after Sierra Wilress, Inc. and Wavecom SA unveiled a memorandum of understanding so as form a global leader in wireless data that would be positioned to benefit from the anticipated growth in wireless data for the mobile computing and M2M markets.

In a statement, Gemalto said it will inform the French Financial Markets Authority (AMF) of its intention to terminate its public tender, in accordance with the timetable of article 232-11 of the AMF General Regulations.

In a commentary, Olivier Piou, Gemalto's CEO, highlighted that, as part of the company's mid to long-term strategy, Gemalto has several options to grow in the M2M market and in others.

Piou also insinuated that the price being paid under the MOU is far too much. He declared: "We do not intend to bid at a price that would not be in the best interests of Gemalto and its shareholders. I wish the best to Wavecom and all its employees."

On Oct. 6, Gemalto indeed made an offer to buy Wavecom in a view to expand its business in the machine-to-machine market. It was then offering 7 euros for each Wavecom share, a premium of 72 percent over the last closing price.

Sierra Wireless, however, said it will make a cash offer of 8.50 euros per ordinary share of Wavecom, and 31.93 euros per OCEANE convertible bond, amounting to an aggregate purchase price of approximately 218 million euros.