The proposed London listing of French media giant Canal+ is facing strong headwinds as a prominent Paris-based fund manager raises serious concerns about the flotation’s potential success. Anne-Sophie d’Andlau, co-founder of activist investment group CIAM, has voiced significant doubts about the planned December listing.
The contentious float forms part of parent company Vivendi’s ambitious four-way split strategy, which includes separate listings for Havas advertising agency and Louis Hachette publishing. D’Andlau’s primary concerns centre on the anticipated lack of analyst coverage and potential liquidity issues for the London-listed shares.
CIAM, despite holding less than 1% of Vivendi’s shares, has garnered support from other investors who share their scepticism about the demerger plan. The activist group argues that the current 40% valuation discount affecting Vivendi would merely transfer to the newly separated entities, failing to create additional shareholder value.
A particular point of contention involves the Bolloré family’s approximately 30% ownership stake. D’Andlau suggests that Canal+’s French domicile, despite its London listing, could enable the family to increase their control without triggering mandatory offer requirements typically associated with UK-listed companies.
The proposed listing faces additional challenges regarding index inclusion. As a French-domiciled company, Canal+ would not qualify for FTSE 100 membership, potentially limiting its appeal to passive investors and analyst coverage. The absence of comparable media companies in London since BSkyB’s departure in 2019 further compounds these concerns.
Sources close to Vivendi have defended the listing plan, highlighting committed analyst coverage from major institutions including Bernstein, BNP Paribas, HSBC, and Barclays. Vivendi maintains that London represents the most suitable exchange for Canal+, citing the company’s international profile and the industry’s preference for English-language markets.
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