Why French government wants to buy some businesses of IT giant Atos

French IT giant Atos received a potential rescue package from the French government after it increased the amount of cash needed to stay afloat. The government made a preliminary offer to buy Atos's most critical businesses, including its supercomputer and cybersecurity divisions. This offer could be worth between €700 million and €1 billion.

This government intervention comes after Atos faced financial difficulties, including delays from customers and accounting issues. The company had to increase its fundraising target and debt reduction goals compared to initial plans. Analysts expressed concern about Atos's financial health.

Atos is given additional time to consider restructuring proposals, including one from the government. The government plans to involve other French companies if its offer is accepted, aiming to keep Atos's strategic assets under domestic control. France’s government intends to bring private companies into a consortium should the offer proceed, Finance Minister Bruno Le Maire said in an interview. He didn’t specify which companies but said they would all be French.

“The goal is that the strategic activities of Atos stay under exclusive French control,” Le Maire said.

Reasons that French government wants to buy Atos
The government's move is driven by national security concerns . Atos plays a vital role in France's nuclear, defense, and cybersecurity sectors, including the upcoming Paris Olympics.

Other potential solutions are also on the table, including restructuring proposals from a group of bondholders and offers from individual investors. The French government previously provided temporary funding to Atos after earlier rescue plans fell through.