(Bloomberg) -- Atos SE said the French government stepped in with a bid for the embattled IT company’s most strategically important businesses after it was forced to raise the amount of cash it needs to avoid insolvency.

France made a non-binding offer to acquire operations including the company’s supercomputer and cyber products businesses, in a deal valuing those parts at between €700 million ($750 million) and €1 billion, Atos said in a statement on Monday.

Atos shares rose 16% to €2.21 at 12:19 p.m. in Paris. The firm’s high-yield notes pared earlier gains. Its €350 million bonds due 2028 reversed gains to drop 0.4 cents on the euro to 23.6 cents, according to data compiled by Bloomberg. 

The government stepped in after the Paris-based company revised an earlier plan seeking money to fund the business and cut debt, following a first quarter performance that was hurt by customers postponing signing contracts. Atos was one of France’s premier tech companies before a series of setbacks, including accounting errors and profit warnings, left it on the verge of insolvency.

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On Monday, Atos raised the amount of cash it is seeking to €1.7 billion from €1.2 billion. It is also seeking to reduce its debt by €3.3 billion, or by two-thirds, compared to a previous plan of €2.4 billion. 

“The latest forecasts, less than a month after the initial ones, reveal that management is flying blind,” Octo Finances analyst Nicolas Etienne said. “Had the new financial scopes been published without the involvement of the French government, it would have been very bad news indeed.”

The company is giving stakeholders until May 3 to file their own restructuring plans, a week later than it had initially proposed.

France’s government intends to bring private companies into a consortium should the offer proceed, Finance Minister Bruno Le Maire said on Sunday in an interview on LCI television. He didn’t specify which companies but said they would all be French. 

“The goal is that the strategic activities of Atos stay under exclusive French control,” Le Maire said.

The government was compelled to intervene for national security reasons, given Atos’s key role as a supplier of IT services to the country’s nuclear and defense sectors, as well as for cybersecurity at this summer’s Paris Olympics.

A group of investors holding about 30% of the bonds across different maturities was also working on a restructuring proposal, Bloomberg reported earlier, while shareholder David Layani and Czech billionaire Daniel Kretinsky are also expected to present their offers for the company. 

When plans to offload assets to Airbus SE and Kretinsky stumbled earlier this year, the French government was forced to step in with interim financing. A court-appointed mediator is now handling its conciliation process with creditors.

--With assistance from Libby Cherry.

(Updates with shares and bonds in third paragraph.)

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