PARIS (Thomson Financial) - Investment funds Centaurus Capital and Pardus
Capital Management, who are the largest shareholders in French IT services group
Atos Origin, denied claims they intend to break the group up and sell its
assets.
In a joint statement -- highly critical of current management -- in which
the two funds urged Atos shareholders to back their nominations for new board
members, they said: "We are not seeking to break up Atos Origin."
The funds said if their two nominations were elected to the board at the May
22 AGM, they will not sell their shares in Atos during the mandates of these
candidates, adding their "one sole aim" is to "create value for all
shareholders".
Fabrice Remon, a partner of the Deminor consultancy that advises minority
shareholding groups and which was commissioned by Atos to submit a report on the
company's dispute with its two shareholders, said last month Centaurus Capital
and Pardus want a "pure and simple" break-up of the group.
Centaurus and Pardus, which together own 22.34 percent of Atos, have put
forward five board candidates for the AGM, two representing the funds themselves
and three independents.
They said Atos is a victim of "questionable strategic planning", notably a
cost-cutting plan they believe is an "inadequate response to the rapidly
changing IT services environment".
They said profitability targets are "well below" those of the competition
and will not generate "sufficient returns to equity".
Centaurus and Pardus said cash flow objectives are "far too weak" to fund
the development of the business and current offshoring targets are too low
compared to those of rivals.
"Atos Origin is fighting with its hands tied," they said.
Atos has urged its shareholders to vote against the candidates put forward
by the funds.
matt.gil@thomsonreuters.com
mrg/ms1
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