Hours after Pinnacle Technology's board said it would not be recommending an indicative 21p per share bid from Coms, the English firm made clear it had no current intention of offering a higher price.
"The Board considers that the proposal reflects fair value for Pinnacle shareholders and, as such, without a recommendation from the board of Pinnacle, the Board confirms that it has no current intention to make an offer for Pinnacle," Coms told investors.
The announcement came in response to a statement issued when the Aim market opened in which Paisley-based Pinnacle Technology said it had received a non-binding indicative offer from Coms on the terms it expected.
Coms had said on Tuesday that it was considering submitting an indicative offer Pinnacle at or around 21p per share.
"The Board believes that such an indicative offer is opportunistic and significantly undervalues the growth prospects of the Company," said Pinnacle Technology. "As such the Board of Pinnacle is not recommending the offer to its shareholders."
Led by chief executive Alan Bonner, Pinnacle has used acquisitions to build a group of IT support and communications businesses.
Pinnacle provided telephony services for the Royal Wedding in 2011.
Shares in Pinnacle Technology closed down 1p at 20.5p.