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Free AccessATOS SE Equity Shorts Grow As Curve Stabilises Following Yesterday’s Sell-Off
- Noting a BBG sources piece yesterday evening indicating that ATOS SE is demanding an extra €500mn for the Kretinsky-led acquisition of Tech Foundations.
- As per our bullets yesterday, the weekend saw French newspaper reports of a planned court-assisted negotiation of impending maturities followed by a morning appointment of a new CEO and a revised (downwards) FCF forecast.
- The piece cites sources as saying the acquiring consortium is ready to negotiate terms but that the €500mn figure is excessive though the company is eager to finalize the deal this month (we note that maturities as early as this month were the motivation cited for the potential court reconciliation as per weekend reports).
- Given the politically sensitive nature of the deal, the ongoing sale of assets elsewhere to Airbus and the near-term liquidity concerns at ATOS, the attempt to negotiate terms at this stage is a risky development.
- Updating our price run from yesterday, the ATOS curve sold off further in the PM as fears grew around a potential restructuring resulting in the juniorisation or conversion of existing bonds (24s -€27.52 DoD, 25s -€15.96 DoD and longer bonds seeing smaller but still significant sell-offs).
- The curve appears to have relatively stabilized this morning with 25s streaming -€1.30 and 26s -€2.40. Equity shorts now stand at 12% of the market cap after the stock shed 15% yesterday.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.