Atos Origin rejects EUR1.6bn Candover bid

Atos Origin, an IT services provider, has rejected a conditional EUR1.6bn approach by Candover for its Atos Worldwide unit, which specialises in electronic payment systems. KKR and Calyon were also reported to be circling the branch.

Hedgefund Centaurus Capital has since halved its stake in the company to 12% with PAI partners upping its stake from 18% to 22.61%. Centaurus Capital and Pardus, another hedge fund, now hold a combined 16.71% of Atos Orgin's shares.

In August, PAI re-entered Atos Origin acquiring a 17.9% stake and thus became the company's biggest single shareholder ahead of active investors Pardus and Centaurus Capital, which at the time held 23% between them. The private equity group's involvement eased fears that the activist hedge fund could break up the company.

Atos Origin, which lost a boardroom battle in June with funds Pardus and Centaurus, has promised its shareholders to undertake a strategy review to accelerate its recovery. In return the investors have agreed to halt any breakup plans. PAI has since gained two seats in the boardroom with Bertrand Meunier and Michel Paris representing it and will now be asking for a third seat. PAI says it is acting alone, that it reserves the right to buy more shares depending on market conditions and has no plans to take over the company.

PAI was a founding shareholder of Atos around two decades ago when it was created via the merger of Axime and Sligos. PAI held 100% of the company until its listing. The firm also oversaw Atos' merger with Origin in October 2000. Atos has a market capitalisation of EUR2.1bn and had revenues of EUR5.8bn in 2007.

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