By Pierre Bertrand
Atos SE shares were halted from trading after falling sharply Monday morning, after a news report that the company is preparing to spin off its historical information-service activities.
At 0807 GMT, Atos shares traded 9.5% lower at EUR19.12 before trading was halted around 0829 GMT.
The Paris-listed company is reportedly planning to make the move as part of a restructuring effort aimed at turning around the division's falling sales and margins, French outlet BFM Business reported, citing an unnamed source.
The new entity, the announcement of which could come Tuesday, would remain part of Atos but would have its own management and accounts and would be run independently, according to the report. A spokesperson for Atos declined to comment when contacted by Dow Jones Newswires.
The touted reorganization would likely be a compromise between the vision of Chairman Bertrand Meunier and that of Chief Executive Rodolphe Belmer, Bryan Garnier analyst Gregory Ramirez said in a research note.
The analyst said the reorganization would be unlikely to result in the sale of the new company.
"We consider there is still a very long way to go before Atos recovers a double-digit operating margin and generates like-for-like revenue growth in line with IT Services standards, and as a last resort, the French government is likely to have a say," Ramirez said.
Write to Pierre Bertrand at pierre.bertrand@wsj.com
Atos Shares Halted Amid Report of Pending Restructuring - MarketWatch
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