Vivendi (-8.09% to 2.40 euros) brings up the rear of the flagship index of the Parisian market, the CAC 40, after having soared yesterday, during a session materializing the split of the conglomerate into four entities. The communications group was penalized this Tuesday by a lowering of recommendation from Deutsche Bank. “Given the limited upside potential from current levels and the absence of short-term catalysts, we downgrade the stock from Buy to Hold, with a target of 2.90 euros,” specifies the bank. German business.
The split added 600 million euros to the total market value of all of the company's activities according to its former scope. “Which is less than expected,” underlines the broker.
Towards the sale of its stake in Telecom Italia?
Furthermore, according to Bloomberg, Vivendi is in negotiations with CVC Capital Partners for the sale of its stake in Telecom Italia. The discussions are said to be at a preliminary stage and there is no certainty of reaching an agreement.
“Vivendi holds 23.75% of TIM's ordinary shares (17% of the capital taking into account preferred shares) which are currently valued at 940 million euros. Last July, TIM finalized the sale of its telephone network fixed to KKR for an amount of up to 22 billion euros as part of a plan supported by the government aimed at reducing debt and relaunching the group”, details Invest Securities.
After the spin-off of Vivendi and the first listing yesterday of Canal + in London, Havas in Amsterdam and Hachette in Paris, the group owned by Vincent Bolloré still includes several assets, including a 9.98% stake in Universal Music Group – itself listed on the stock market in 2021 by the French group -, valued at nearly 4.5 billion euros.
The firm is also present in the capital of the Italian television giant MediaForEurope (formerly Mediaset), with nearly 20% of the shares, as well as within the French production company Banijay (19.2%), or even the Spanish media group Prisa (11.9%). Vivendi is also the sole shareholder of Gameloft.
Ultimately, Vivendi should leave the CAC 40 due to the mechanical drop in its valuation which was divided by four compared to the end of last week and the effective split of the shares, to just over 2.5 billion euros.
source: AOF
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