By Pierre Bertrand


Atos is in talks with bondholders and banks after a consortium that included shareholder Onepoint withdrew its rescue proposal, the latest setback for the struggling French IT firm as it seeks to turn around its finances.

Negotiations between Atos and the Onepoint consortium ended Tuesday in a blow to the company grappling with persistently high debt and sapped investor confidence.

Atos, the cybersecurity provider for this summer's Paris Olympics, had earlier this month agreed to work with the Onepoint consortium to reach a definitive financial-restructuring agreement to be implemented next month.

However, the consortium, which also included Butler Industries and Econocom, said it found that conditions weren't favorable for a lasting solution.

Onepoint's withdrawal paves the way for Czech billionaire Daniel Kretinsky's EP Equity Investment to rejoin the race to salvage Atos and add another European asset to his collection.

Kretinsky recently scooped up the U.K.'s Royal Mail postal service after owner International Distribution Services agreed to be bought for almost $5 billion. Earlier this year, a Kretinsky-led consortium took control of embattled French supermarket owner Casino Guichard-Perrachon.

EP Equity Investment in a letter to Atos Tuesday voiced interest in restarting discussions with the company and said it was ready to consider making a revised proposal. Kretinsky's initial rescue bid for Atos was outgunned by Onepoint earlier this month.

For now, Atos said it remains in talks with a representative committee of its bondholders over a revised proposal for a definitive restructuring agreement. The company plans to strike a final deal during the week of July 22.

The proposal from the bondholder representative committee is aimed at meeting the company's short and medium-term liquidity requirements, Atos said. Discussions are continuing with the representative committee of bondholders and some banks to reach an agreement as soon as possible, the company added.

Atos said an in-principle financial restructuring agreement with the financial creditors could be reached as soon as this week.

Meanwhile, the group said it had finalized negotiations with the French state for an agreement aimed at protecting its sovereign interests given that the company operates in sensitive areas.

Atos's operations span high-performance computing, IT management, service and maintenance, cloud and cybersecurity, including for government, homeland security and defense clients.

The agreement that Atos expects to sign Wednesday would allow the French state to take over sensitive activities if a third-party acquires at least 10% of Atos.

France recently offered to acquire parts of Atos's big data and security arm for up to 1 billion euros, ($1.07 billion) underscoring efforts from the government to prevent the collapse of the company.


Write to Pierre Bertrand at pierre.bertrand@wsj.com


(END) Dow Jones Newswires

06-26-24 0609ET