Airbus U-turns on negotiation with Atos for stake in security business Evidian

The planemaker had previously made an offer to buy a 29.9 per cent stake into Evidian

Airbus has stepped down from acquiring a 29.9 per cent minority stake into French services giant Atos' security business.

The company claimed the move does not meet objectives "in the current context and under the current structure".

The aircraft builder giant said they will continue to discuss other potential options and pursue the work on the long term strategic and technological partnership between Airbus and Evidian which has the potential to create "significant value for both companies".

Reports in the Financial Times, claimed that Airbus has bowed to pressure from billionaire hedge fund manager, Chris Hohn to pull its bid on Evidian.

According to the same report, Atos' shares closed down 17 per cent to €10.71 in Paris after the company confirmed that the European plane maker would no longer pursue talks.

Rumours first spread in January that the aerospace giant had set its sights on Evidian, Atos' soon-to-be spun-off digital, big data and security-focused company.

Atos had already been approached by French rival, onepoint and British private equity fund ICG both of which were rejected by Atos despite a €4.2bn bid.

This is the latest twist in a tumultuous couple of years for Atos.

In January 2022, the company had a shaky start after the group's CEO Elie Girard left the company for undisclosed reasons.

The group then issued its second profit warning in seven months, telling investors the revised guidance communicated in July 2021 will not be met due to "several significant effects".

The following month Atos yet again cut its forecast after admitting its previous predictions issued January 10 2022 could not be met.