A proposal to nationalize Atos is pending in the French parliament, although it seems unlikely to succeed. The proposal has insufficient support to be passed, and is described by Atos itself as a political maneuver.
An amendment was proposed last week in the French parliament by MPs, members of the defense committee of the French National Assembly, to nationalize Atos. That amendment proposal is part of the ongoing French budget process. Several parties within the French government have been considering nationalizing Atos for some time.
In a response, Atos called the proposal a political maneuver, pointing out that it does not have sufficient support to pass. Further, Atos let ITdaily know the following:
“The group continues to have constructive discussions with the French government regarding the sale of certain sovereign sensitive activities. It is also worth noting that our financial restructuring plan has now been approved that ensures the long-term sustainability of our operations.”
Persistent difficulties
Atos has been in trouble for more than three years and has had seven CEOs in the interim. In the amendment, according to The Register, the petitioners refer to a €5 billion debt burden for Atos. That would have come about because of an ill-conceived procurement and expansion strategy in the U.S. that has not brought the company the desired results.
The reason for considering nationalization is its strategic customer base. Atos works with the French military and France’s largest nuclear company. That should not fall into the hands of foreign investors. Several restructuring talks have already taken place to reduce debt. This year there was still hope and a buyer was even found. That turned out to be in vain.
The company’s revenues fell 2.7 percent in the first half of this year to about 5 billion euros. 9 percent of its workforce was laid off, it lost 1.9 billion euros and has 4.2 billion euros in debt.
An earlier version of this article, which appeared on Nov. 5, incorrectly stated that the amendment had been approved. That is not the case and is unlikely to happen. This article was updated with the latest information and a response from Atos.