Reluctant shareholder

Vivendi was apparently right to let a better operator manage its fixed-line telephone business. A year ago, when it agreed to merge its loss-making division Cegetel with Groupe Louis Dreyfus’ Neuf Telecom, the new company’s enterprise value was set at E2.1bn by CSFB. Now Neuf Cegetel, as it is called, is preparing an IPO that will put its EV at around E5bn. Over the last year Vivendi’s telecom arm SFR has gradually upped its stake to 41% of the company. Louis Dreyfus still owns 35%. Neuf says i...