PARIS (Reuters) – Atos shares plunged on Monday by up to 12% following reports by newspapers Le Parisien and Les Echos, which highlighted calls made by some lawmakers in France’s National Assembly to nationalise the struggling tech company.
The reports reveal that two lawmakers, Olivier Marleix from the conservative Les Republicans and Socialist Philippe Brun, have lodged amendments to France’s 2024 budget law for a partial state takeover of Atos. Both lawmakers cite national security concerns as their motivation.
As a consequence, the value of Atos shares took a significant hit on Monday, resulting in a decrease of up to 12%, according to a trader who spoke with Reuters. This decline adds to the already substantial decline of almost 80% in Atos shares over the past two years.
Atos, a French tech company, provides IT services and consulting. It has been facing numerous challenges recently, leading to concerns about the future of the company. The push for nationalisation from some lawmakers reflects growing concerns about the impact of Atos’ struggling performance on the country’s technology sector.
Atos’ decline in value raises questions about its future and potential consequences for the company’s employees and stakeholders. Nationalisation could offer a potential solution to address these concerns, as it would provide the government with control over the company’s operations and strategic decisions.
However, such a move would also raise other considerations, such as the government’s ability to effectively manage and revive the struggling company. Additionally, nationalisation could have wider implications for France’s tech industry, potentially affecting competition and innovation.
The proposed amendments to the 2024 budget law highlight the lawmakers’ belief that nationalising Atos is necessary to safeguard national security interests. This suggests that the lawmakers see Atos as a critical player in France’s technology infrastructure, and they are concerned about potential vulnerabilities and risks that the company’s financial struggles may present.
It remains to be seen whether these amendments will gain traction and be included in the final budget law. The outcome will have significant implications for both Atos and the broader tech industry in France.
Reporting by Danilo Masoni and Michal Aleksandrowicz; writing by Tassilo Hummel
