This photo taken on April 26, 2024 shows the headquarters of French multinational information technology company ATOS in Bezon, near Paris. (Photo by Ludovic Marin/AFP) (Photo by Ludovic Marin/AFP via Getty Images)
Ludovic Marin | AFP | Getty Images
Shares in embattled French IT company Atos plunged on Monday as it weighed between two rescue deals, both of which would result in “massive dilution” for existing shareholders.
Atos fell 16.07% as of 10:21 a.m. London time.
The two restructuring deals being discussed are led by Czech billionaire Daniel Kretinsky and Atos major shareholder David Layani. Companies have until Wednesday, June 5, to make their selections.
“In all cases, the implementation of these proposals will result in a significant dilution of the equity interests of existing Atos SE shareholders,” Atos said in a statement. statement on Monday.
The company said management is working with financial creditors to obtain maximum support for one of the transactions by June 5, with the goal of reaching a final agreement on the restructuring in July.
Kretinsky had previously held discussions with Atos about acquiring parts of its business, but those discussions ultimately fell through. Layani held more than 11% of Atos’s share capital and voting rights as of December 2023, according to Onepoint, Layani’s IT consultancy. website.
The deals were struck after a series of negotiations to acquire all or part of the Atos business failed. Airbus has also engaged in such discussions.
In April, Atos said it had received a letter of intent from the French government to potentially acquire part of the business. At the time, the company said it could make a non-binding offer in early June. On Monday, Atos noted that due diligence on the deal was still ongoing.
Atos has several sensitive contracts with French authorities and the country’s military. It is also responsible for managing data and cybersecurity for the 2024 Paris Olympics.
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