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The French government is proposing to buy the major assets of heavily indebted technology company Atos as the Paris government wants to keep the assets under state control.
The country wants to buy three strategic parts of Atos. One is the Superhe Calculator for quantum computing, which the French military uses for the country's nuclear weapons program. A secure communications technology used by the military. and certain cybersecurity assets.
In Paris, Finance Minister Bruno Le Maire said on Sunday that the country was legally bound to take control of Atos amid concerns that foreign investors, including hedge funds, could take control of Atos in an upcoming 3.9 billion euro debt restructuring. He announced that he had sent a weak letter of intent to Athos. French company talks about purchasing assets.
“Athos has sovereign assets that should be under exclusive French control,” Le Maire told news channel LCI. “We have expressed interest in acquiring all of Atos’ strategic assets.”
The government's letter of intent was prepared through APE, the agency that controls the French state's stake in companies such as power company EDF and telecommunications group Orange.
Atos, which is chaired by former UniCredit president Jean-Pierre Moustier, declined to comment.
The French government stayed out of much of the turmoil at Atos, as the company has changed several chief executives and made several strategic U-turns over the past three years.
But as Atos' financial situation deteriorated, the state created a “golden share” scheme for the company's sensitive assets in early April, providing short-term loans of 50 million euros and allowing it to block acquisitions not approved by ministers. Then he announced. .
Economy Ministry officials said the assets the government was proposing to buy would generate annual income of about 900 million euros and employ 4,000 people.
This represents less than 10% of Atos' 2023 sales and 4% of its total workforce.
The French government's proposal is not a forced nationalization, an economy ministry official said.
It added that the state was seeking to enter into negotiations with Athos ahead of potentially making a firm offer by June.
Le Maire said the government would aim to bring together French industry associations to join the consortium.
“We will see what other players want to participate. It will only be French groups in strategic areas such as defense and aerospace,” Lemaire said.
French Rafale fighter jet maker Dassault Aviation had previously expressed interest in some of Atos' assets, according to people briefed on the situation.
Thales, the French defense electronics group, may also be joined by the state.
Thales declined to comment, and Dassault did not respond.
Atos is seeking to raise cash to reduce its debt burden, and various negotiations with individuals and companies interested in purchasing some of its assets have been unsuccessful.
Among them are Czech billionaire Daniel Kretinski and Airbus.
Atos has asked major shareholders and creditors for proposals by Friday, with the aim of reducing its debt by at least 2.4 billion euros. It could require €1.2 billion in new equity and debt.
