French technology firm Atos announced on Wednesday that the consortium led by investor David Layani’s Onepoint has withdrawn from discussions on its restructuring. Despite this setback, Atos still plans to reach a definitive agreement by July.
Onepoint’s Withdrawal and Kretinsky’s Renewed Interest
Earlier this month, another consortium, the EPEI group led by Czech billionaire Daniel Kretinsky, was knocked out of the running. However, Kretinsky’s group has since expressed renewed interest in rejoining the talks, sending a letter to Atos indicating their desire to re-enter discussions.
This news initially caused Atos shares to plunge, but they later surged by 11.9%, reflecting the market’s volatile reaction to the ongoing saga to rescue the IT company, which is considered of strategic interest by the French government.
A Long-Running Restructuring Saga
Just two weeks ago, the battle to control the company appeared settled after Layani won a bid over Kretinsky to restructure Atos’ debt. Concurrently, the French government tabled a non-binding offer to buy Atos’ business units deemed crucial for France’s national security.
However, the consortium comprising Onepoint, Butler Industries, and Econocom confirmed the end of their discussions on Wednesday, leading to the latest developments in this prolonged restructuring saga.
Securing Sovereign Interests
In a separate statement, Atos announced that it had finalized negotiations with the French government to protect the country’s sovereign interests. Bull SA, an Atos subsidiary, will issue a “preferred share” to the French government, granting holders of such stocks more rights than common shareholders.
Market Reaction and Future Prospects
Following these announcements, Atos shares were up 1.7% as of 0746 GMT. The company’s ability to secure a new restructuring deal remains critical, given its strategic importance and the ongoing interest from major investors.
As Atos continues to navigate its restructuring efforts, the renewed interest from Daniel Kretinsky’s consortium provides a potential pathway forward. The company’s negotiations with the French government to protect sovereign interests further underscore its strategic value. With a definitive agreement expected by July, the coming weeks will be crucial for Atos and its stakeholders.
