(Bloomberg) -- Vivendi SE will exit France’s blue-chip CAC 40 index, Paris bourse operator Euronext said, in a move that was expected after the media conglomerate split into four separate entities.
Vivendi’s place in the French benchmark will be taken by testing and certification group Bureau Veritas SA after its shares rose 30% this year. The changes will be implemented after markets close on Friday, Euronext added.
Three Vivendi spinoffs began trading on Monday, with the largest being Canal+’s listing in London. Advertising firm Havas BV is trading in Amsterdam, and publisher Louis Hachette Group made its debut in Paris. Vivendi Chairman Yannick Bolloré had said that the company would “very likely” drop out of the CAC 40 once the split was implemented.
READ: Vivendi Cut by Deutsche as Split Adds Less Value Than Expected
Vivendi’s share price has been sliding as the split approached, with analysts expressing concerns on performance and governance. At the close on Tuesday, the combined market capitalization of the four stocks was worth 1.75% percent less than where Vivendi stood on Friday.
Membership of major benchmarks has gained importance in recent years, given the dominance of so-called tracker funds. Exclusion could see stocks subject to selling pressure from such funds, which look to mirror the performance of a gauge.
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