Atos shares plummet 22% as Airbus kills BDS sale talks By Investing.com

© Reuters. Atos (AEXAY) shares plummet 22% as Airbus kills BDS sale talks

French software program firm Atos SE (AEXAY) noticed its shares plummet 22% in Paris after Airbus (EADSY (OTC:)) mentioned it has terminated talks regarding the potential sale of Atos’s BDS.

“Atos is analysing the ensuing state of affairs and actively evaluating strategic alternate options that can take into accounts the sovereign imperatives of the French state,” the corporate mentioned in a press release.

Consequently, Atos has determined to delay the discharge of its 2023 annual outcomes. The corporate said that this postponement will enable it to evaluate its strategic alternate options transferring ahead.

Airbus additionally confirmed the information.

“Airbus has determined it’s going to not pursue discussions with ATOS about this potential transaction,” the airplane maker wrote in a press release.

Commenting on the event, analysts at Oddo BHF mentioned the breakdown of BDS sale talks “poses each a liquidity drawback” and a problem “relating to debt restructuring.”

They imagine the previous “may velocity up the safeguard process and improve the potential dilution for present shareholders.”

Atos, which appointed its fourth CEO in underneath two years this January, has confronted quite a few challenges, together with a number of revenue warnings. The corporate is actively in search of methods to lift capital to handle its debt.

Negotiations with Czech billionaire Daniel Kretinsky relating to the sale of Atos’s legacy operations have just lately ended with out an settlement. Nevertheless, reviews from some information retailers counsel that Kretinsky could also be considering making a brand new provide.

Airbus shares rose 1.5% in Paris.