The share price of French technology company Atos (ATOS.PA) plummeted after it announced on Monday that Paul Saleh would take over as CEO and that free cash flow would fall short of its first projection for the second half of the year.
Saleh, the company’s current chief financial officer, will take over as CEO, marking Atos’ fourth CEO appointment in less than two years as the business has struggled with a slew of earnings warnings.
Early trade saw a 16% decline in Atos shares. Since the beginning of the year, the stock has decreased by about 40%.
Saleh succeeds Yves Bernaert, who departed the company “after an intense period of transformation,” according to Atos. Jacques-Francois de Prest, who had finance positions at Mobivia, an auto components manufacturer, joined as CFO.
On Monday, the publication Les Echos claimed that the corporation was having trouble with its reorganization strategy.
Atos said it has not submitted a request to begin mediation procedures with creditors, despite the fact that it is taking longer than anticipated to arrange the sale of its loss-making Tech Foundations division.
It looks far off that the Tech Foundation will be sold to the Czech billionaire Daniel Kretinsky’s EPEI. Les Echos reported on Monday that a “last chance” meeting between the parties was scheduled for the coming days, citing an unidentified source.
When Reuters reached out to Atos and the Kretinsky camp for comment on the report, they did not immediately reply.
