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Will spinning off SFR make Vivendi a better investment?
Vivendi took another step toward spinning off its telecommunications arm, SFR. It says it will make the decision by early 2014.
The French conglomerate is selling most of its Maroc Telecom and Activision video game businesses as part of a broader overhaul.
Vincent Bollore will become vice chairman of the company's board.'
The move marks another sweeping re-organization of the former French utility company.
Saxo Bank's Peter Garnry says it's very refreshing to see a company taking steps to enhance shareholder value, and is bullish on the stock. he says the spin off will also makecatalyst for the share price.
But on the whole he says telecoms are not an attractive place for long term investors. If you want a stable defensive stock with a good dividend then they are worth having in a portfolio but you can find much better returns elsewhere.
01:34 minutes
Tags: activision, company, defensive stock, dividend, equities, france, french conglomerate, investors, maroc telecom, media, peter garnry, portfolio, re-organization, sara walker, saxo bank, saxo tv, sfr, share price, shareholder value, stock, telecommunications, telecoms, tradingfloor.com, utility company, video, vincent bollore, vivenvdi