Vivendi to study break-up into two separate companies

|About: Vivendi SA ADR (VIVHY)|By:, SA News Editor

Under pressure from shareholders, Vivendi (VIVHY.PK) plans to explore a separation into two companies: one comprising its French phone unit SFR and the other an international media group made up of the the rest of its businesses - Universal Music Group, pay-TV firm Canal Plus and Brazilian broadband provider GVT.

The new Vivendi intends to keep CEO Jean-Francois Dubos in the job and end a search for a new boss.

"The board agreed there were no synergies between telecoms and content, and that was dragging down Vivendi because of a holding structure discount," said 5% shareholder Vincent Bollore.

The proposed break-up comes after Vivendi agreed to sell its holding in video-games maker Activision Blizzard.