Atos Stock Dips After Onepoint Announces Withdrawal from Shareholding

Atos shares declined following the announcement that Onepoint, a shareholder, would divest its stake in the company. This development has triggered a market reaction, with the specific share price movement not provided in the abstract summary. The article highlights Atos's significance as a financial news source.

In a surprising development, Atos SE, a French IT services company, faced a setback in its efforts to secure a bailout as its largest shareholder, Onepoint, announced the abandonment of negotiations to rescue the struggling firm [1]. This unexpected move has triggered a market reaction, resulting in a decline in Atos's share price, although the specific extent of the price movement was not provided in the available abstract.

Atos, once a leading player in the French tech industry, has been grappling with financial difficulties, including accounting scandals and mounting debts, which have left it on the brink of insolvency [1]. Despite losing 90% of its value over the past year, Atos remains an essential IT services provider in its home country, with strategic contracts linking it to crucial industries such as defense, nuclear, and the Olympic Games [1].

The failed negotiations with Onepoint had initially shown promise, with the smaller French tech company aiming to help Atos avoid a breakup and remain under French ownership [1]. However, during the negotiations, it emerged that Atos would require more investment than initially assumed, and Onepoint and its partners were unable to provide sufficient funds [1].

As a result, Atos is now left with two primary options to alleviate its financial woes: negotiate a deal with the billionaire investor Daniel Kretinsky, who has been attempting to buy the company, or forge a solution among existing creditors [1]. Kretinsky, who had previously expressed more pessimistic views about Atos's prospects, had asked bondholders to forgive a significant portion of the company's debt [1].

Despite the setback, Atos remains optimistic and plans to reach an agreement with the majority of its creditors next month [1]. This restructuring process is already underway, and the company intends to use a backup plan to ensure its financial viability.

[1] Layani, D. (2023, March 15). Atos's Biggest Investor Scraps Rescue, Leaving Troubled French IT Company With Few Options. Bloomberg. https://finance.yahoo.com/news/atos-biggest-investor-scraps-rescue-130316681.html