Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
The French government has proposed buying key assets of Atos, the heavily indebted technology company, because Paris wants to keep them in national hands.
The state wants to purchase three strategic parts of Atos: super calculators for quantum computing, which are used by the French army for the country’s nuclear weapons programme; secure communications tech also utilised by the military; and certain cyber security assets.
Amid concerns in Paris that foreign investors, including hedge funds, could gain control of Atos in an upcoming restructuring of its €3.9bn debt load, finance minister Bruno Le Maire said on Sunday that the state had sent a non-binding letter of intent to the French company about purchasing the assets.
“There are sovereign assets in Atos that must stay within the exclusive control of France,” Le Maire told news channel LCI. “We have signalled our interest in acquiring all the strategic assets of Atos.”
The government’s letter of intent was made via the APE, an agency that manages the French state’s stakes in companies including utility EDF and telecoms group Orange.
Atos, chaired by former UniCredit boss Jean Pierre Mustier, declined to comment.
The French government stayed out of the much of the turmoil at Atos, as the company churned through several chief executives and made several strategic U-turns in the past three years.
But as Atos’ financial position worsened, the state in early April announced it would provide a €50mn short term loan and create a “golden share” system for the company’s sensitive assets, which would allow ministers to block any acquisitions they did not approve of.
The assets the government was proposing to buy generated about €900mn in annual revenues and employed 4,000 people, an economy ministry official said.
That represents less than 10 per cent of Atos’s 2023 sales, and 4 per cent of the total workforce.
The French government’s proposal was not a forced nationalisation, the economic ministry official said.
The state was seeking to engage in negotiations with Atos ahead of potentially making a firm offer by June, they added.
Le Maire said the government would seek to rally French industrial groups to join its bid in a consortium.
“We will see what other players might want to participate — it will only be French groups in strategic sectors such as defence or aerospace,” Le Maire said.
Dassault Aviation, the French maker of Rafale fighter jets, has previously expressed interest in some of Atos’ assets, according to people briefed on the situation.
Thales, the French defence electronics group, would be another potential participant for the state to enlist.
Thales declined to comment, while Dassault did not respond.
Atos has had various failed talks with individuals and companies interested in buying some of its assets, as the group has sought to raise cash to reduce its debt load.
They include Czech billionaire Daniel Křetínský and Airbus.
Atos has asked for proposals by Friday from top shareholders and creditors with the goal of cutting its debt by at least €2.4bn. It may need €1.2bn in new equity and debt.
Read the full article here
