Vivendi (VIV.PA), opens new tab management and bosses of some of its newly spun out companies - Canal+, Havas and Louis Hachette Group - need to lay out more clearly their strategies to convince investors the break-up was worth it, analysts and investors said.
The spin-offs in December, backed by the Bollore family, split Vivendi into four multi-billion-euro companies in a bid to unlock value as the French media conglomerate's overall market capitalisation was estimated to be less than the sum of its parts.
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But the potatoes they ended up with in the study, some no bigger than a quail's egg, were an ominous sign for future food security.
Their three-month study in Beijing looked at the effect of higher temperatures on crop yields.
But some of the standalone companies had a weak start, triggered in part by a lack of information about strategy, some disappointing financial guidance and uncertainty around pay-TV group Canal+'s acquisition of broadcaster MultiChoice, the analysts and investors said.
Shares in Vivendi's newly listed businesses fell in their first month of trading to levels below their combined value before the split, undermining the Bollore family's hopes to boost value.
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Only Louis Hachette shares are currently above their listing price, and Vivendi is trading above the last closing price before the split as adjusted by stock exchange operator Euronext.
The combined market capitalisation of the four companies was 7.7 billion euros ($7.92 billion), based on LSEG data as of the close on Jan. 17. Before the break-up, Vivendi was worth about 8.3 billion euros, based on LSEG data.
