Atos: Still aiming for government deal on strategic assets as initial offer expires

PARIS :IT firm Atos is still aiming to reach a deal with the French state on the sale of its most strategic activities such as cybersecurity and super-computing, it said on Monday, after an initial government offer expired.
Atos, which is undergoing restructuring proceedings having reached a deal with its main creditors earlier this year, secures communications for the French military and secret services and manufactures servers to make supercomputers.
“Atos has offered to continue discussions and has indicated that it has submitted a new proposal to the French State that is compatible with the financial restructuring plan,” the company said. “The expiry of the offer has no impact on the ongoing financial restructuring,” it added.
In a separate statement, the office of Finance Minister Antoine Armand said the state intended to continue negotiations with Atos and would propose a new acquisition plan “shortly”.
Atos shares were down 0.6 per cent in early trading in Paris. The stock has slumped by around 90 per cent so far this year.
The French government’s initial offer was part of a concerted effort to retain control over strategic technology assets within the country.
However, its readiness to mobilise significant funds appears in doubt amid urgent efforts to reduce a budget deficit that is set to reach 6.1 per cent of GDP this year to 5 per cent by the end of 2025.
The concerned entities – Advanced Computing, Critical Systems and Cyber Products are part of Atos’ cybersecurity unit BDS. They employ about 4,000 people and generate about 900 million euros ($987.30 million) of annual sales, a French Finance Ministry official told Reuters in April.
Atos said any deal with the state would require the prior approval of the Nanterre Commercial Court, where Atos’ accelerated safeguard plan will be submitted on Oct. 15.
($1 = 0.9116 euros)