French software company Atos SE (AEXAY) saw its shares plummet 22% in Paris after Airbus (EADSY) said it has terminated talks concerning the potential sale of Atos's BDS.
"Atos is analysing the resulting situation and actively evaluating strategic alternatives that will take into consideration the sovereign imperatives of the French state," the company said in a statement.
Consequently, Atos has decided to delay the release of its 2023 annual results. The company stated that this postponement will allow it to assess its strategic alternatives moving forward.
Airbus also confirmed the news.
"Airbus has decided it will no longer pursue discussions with ATOS about this potential transaction," the plane maker wrote in a statement.
Commenting on the development, analysts at Oddo BHF said the breakdown of BDS sale talks “poses both a liquidity problem” and an issue “regarding debt restructuring.”
They believe the former “could speed up the safeguard procedure and increase the potential dilution for current shareholders.”
Atos, which appointed its fourth CEO in under two years this January, has faced numerous challenges, including multiple profit warnings. The company is actively seeking ways to raise capital to manage its debt.
Negotiations with Czech billionaire Daniel Kretinsky regarding the sale of Atos's legacy operations have recently ended without an agreement. However, reports from some news outlets suggest that Kretinsky may be contemplating making a new offer.
Airbus shares rose 1.5% in Paris.