Canal+ Shares Drop on London Debut

Canal+, a French media company formerly part of Vivendi, experienced a significant share price drop of over 20% on its debut at the London Stock Exchange, falling from an opening price of 290p to around 221p before rebounding to 234p. The decline was expected due to certain funds restricted to French-listed stocks being forced sellers. This listing is part of Vivendi's strategy to boost the perceived value of its subsidiaries, following the spinoff of other entities like Havas and Louis Hachette, which saw gains in Amsterdam and Paris. Analysts have varied in valuing Canal+, with JPMorgan estimating around €6bn and UBS around €3bn. Despite initial volatility, analysts expect the valuation to improve over time as the company establishes itself independently. This marks the largest UK market debut since regulatory changes aimed at enhancing the competitiveness of the London Stock Exchange.