Debt-ridden technology group Atos said on Friday that the French state has made a 700 million euro bid for its most sensitive businesses, including cyber security and supercomputers used in the country’s nuclear deterrent.
The offer, worth $750 million, comes weeks after Paris said it would not allow foreign players to take over the French company’s strategic operations.
“We kept our word. I always said we had to keep the strategic activities of Atos,” French Economy Minister Bruno Le Maire told Franceinfo radio.
“We have assumed our responsibilities to buy, with other companies that could be partners, the strategic activities of Atos and to guarantee that these strategic activities will remain under the full or partial control of the state and public authorities,” said Le Maire.
Atos said in a statement that its board, under the auspices of a mediator, and management “will discuss this proposal with the French state,” but warned that “no assurances can be given that the parties will successfully negotiate and conclude a definitive agreement”. .
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Paris is seeking to acquire the group’s businesses in advanced computing, mission-critical systems and cyber security.
The company had said in late April that these businesses were valued at between 700 million and one billion euros.
The bid also comes three days after Atos chose a bailout bid from a consortium led by its major shareholder, French IT consultancy Onepoint, over a bid from Czech billionaire Daniel Kretinsky.
Onepoint chief David Lagiani warned in an interview with French business newspaper Les Echos on Wednesday: “We will do everything to protect the so-called ultra-sensitive assets, but we will be very careful to make sure they are not sold off.”
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Shares in Atos jumped more than 20 percent after Friday’s announcement, although the share price has lost a fifth of its value since trading began.
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Atos, which has contracts with the French military and is the IT partner for the Paris Olympics, is reeling under almost five billion euros of debt.
The group confirmed on Friday its aim to reach a definitive rescue deal with consortium Onepoint to be implemented by July. The Olympics begin on July 26.
Onepoint’s financial restructuring deal includes the raising of €250 million of new shares in Atos, the provision of €1.5 billion in new debt and the conversion of €2.9 billion of debt into equity.
The government has also granted a €50 million loan to the company.
Source: AFP