The Czech billionaire claims his offer for Atos will give the company quick funding and solid direction.
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French technology company Atos, the official technology partner of the 2024 Summer Olympics in Paris, has attracted significant acquisition interest from Czech billionaire Daniel Krechinsky, also known as the “Czech Sphinx.” This was done in partnership with hedge fund Attestor as well as Krechinsky's investment vehicle, EP Group.
Krechinsky also recently submitted a takeover bid for Royal Mail, citing disappointing service delivery, poor financial performance and slow overall transformation as key reasons for his bid.
But he reassured Royal Mail's parent company, International Distribution Services (IDS), that he would support Royal Mail's parent company International Distribution Services (IDS) every step of the way to rebuild the company and transform it into a modern postal service provider.
Royal Mail has consistently failed to meet its first and second class delivery targets since 2019.
Krechinsky's latest bid for Atos comes at a time when the French tech company is exceptionally in debt, weighed down by around 5 billion euros in debt. The company has now announced that it will need approximately 1.1 billion euros to continue operations until next year.
Krechinsky argues that it will not only provide quick and easy funding, but will also provide much-needed direction for Atos and ultimately help it get back on track with a solid strategy. , supported his bid.
Atos has received three other acquisition offers. Although it chose to decline Bain Capital, Atos has received takeover offers from a group of banks and bondholders within its own banking group, as well as from OnePoint, which is affiliated with Butler Industries.
Why is Mr. Krechinsky's bid for Athos so problematic?
One of the main reasons why Mr. Krechinsky's bid for Atos could cause some problems is that the French government is very opposed to foreign takeovers, and has been heavily opposed to foreign takeovers, such as PepsiCo's proposed acquisition of Danone in 2005. This is because other foreign bids have also been vocally opposed.
Apart from the Paris Olympics technology contract, Athos also currently holds several important national and French military contracts, including operating supercomputers for France's nuclear deterrent.
As a result, Mr. Krechinskiy's bid could come under intense scrutiny from French authorities, potentially significantly delaying and complicating matters. Given that Atos has already received significant interest from other companies regarding the acquisition, if the legal complications associated with Krechinsky's bid drag on, Atos may choose to accept one of the other options. There's plenty of possibility.
Jean-Pierre Moustier, chairman of Atos SE, said in a statement: “We would like to thank each of the submitting parties for the refinancing proposals received as part of the current mediation process. We would like to thank the key representatives of our bondholders.” Our banking group is working together constructively to find a refinancing solution for Atos. ”
“We will continue to work with our financial creditors to reach a solution that is acceptable to them and consistent with the terms we have shared by May 31,” Atos SE CEO Paul Saleh said in a statement. I intend to find it.''
“We are confident that we can reach a final agreement by our July target, ensuring business continuity for our customers and in the best interests of Atos’ employees, customers, suppliers, creditors, shareholders and other stakeholders. are doing.”
