UPDATE 1-Atos Origin alone after ending buyout talks
(adds details, outlook)
PARIS May 14 (Reuters) - French IT services group Atos Origin (ATOS.PA) called off talks with potential buyers and pledged to pursue its turnaround strategy alone.
Atos Origin said in a statement it had not received a firm offer following a review of its strategic options, confirming a Reuters report.
The decision ends lengthy on-off negotiations with a number of suitors including domestic rival Capgemini (CAPP.PA).
Sources close to the matter told Reuters on Sunday talks had collapsed on price.
Atos manages computer systems used at the Olympic games but faces tough competition from Capgemini and Finland's TietoEnator (TIE1V.HE).
With 100 percent of its shares freely traded and a valuation eroded by profitability concerns, Atos has often been cited as a likely takeover target in a fragmented market.
Atos said in March it had received approaches but no formal bid, triggering weeks of speculation about its future.
Final bidders included private equity firm PAI Partners and Permira [PERM.UL] working with Eurazeo (EURA.PA), a source close the deal said on Sunday.
Permira and Eurazeo came closest to sealing an agreement.
Chairman Bernard Bourigeaud said in Monday's statement that Atos had received "expressions of interest aimed at acquiring the totality of the group's shares in March and had decided to review them".
Following the review the group's supervisory and managing boards had decided "unanimously" that the best decision for the group and all parties was "to implement the transformation plan under the current shareholder structure and continue creating value for shareholders, clients and staff".
Atos shares were suspended on Friday pending the release of a statement. They last closed at 53.5 euros, valuing it at 3.7 billion euros.
The group said it would focus on implementing its three-year restructuring plan aimed at doubling operating margin in absolute value by 2009.
The company maintained its goal for 2007 sales growth of 8.5 percent after posting a 6.9 percent rise in first-quarter sales to 1.435 billion euros. Like-for-like growth was 2.5 percent.
The three-year restructuring plan was progressing "satisfactorily", notably in the offshore sector where Atos said it was raising its staff targets to 8,000 from 6,100 by 2009.
The integration of the Banksys acquisition was also progressing faster than expected, it said.
In March, media reports said Atos had received an informal expression of interest at 58 euros a share, valuing the business at nearly 4 billion euros.
((Writing by Dominique Vidalon; editing by Paul Bolding; Reuters Messaging: rm://dominique.vidalon.reuters.com@reuters.net; email: dominique.vidalon@reuters.com; Telephone: +33 1 49495432)) Keywords: ATOS BUYOUT/
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