VIENNA -- Austria's AMS failed in its 4.5 billion euro ($4.9 billion) takeover attempt of Osram but said it would still explore strategic options to pursue an acquisition of the German lighting group.
AMS managed to collect 51.6 percent of Osram shares, including its own near 20 percent stake, significantly less than the required 62.5 percent level, it said on Friday.
AMS had fought a fierce takeover battle with private equity groups for the much bigger leader in automotive lighting.
AMS is best known for supplying sensors for the latest iPhones.
The company wants to create a global leader in sensors and photonics, and is working on reducing its dependence on Apple.
It increased its initial bid to 41 euros a share days before the acceptance period expired on Tuesday, to fight off the entry of a new bidding consortium of Bain Capital and Advent.
AMS also bought as many shares as possible via the market, making it now the largest Osram shareholder with a 19.99 percent stake.