French media company Vivendi is considering plans to split its struggling telecoms company SFR from its main business in an effort to "refocus" for the future.
Vivendi announced that it has approved plans for a formal study of how to split the company in two, with entertainment and media assets on one side and its telecoms operations on the other.
A decision is likely to be announced early in the new year, with a vote on it then taking place at Vivendi's annual meeting a few months later in the spring.
The idea fits with Vivendi chairman Jean-Rene Fourtou's vision of focusing the company firmly on a small group of media assets that he believes will be better valued on the stock market.
The proposal comes after SFR revealed profits in the first half of this year had plunged 11.3 percent compared with the first six months of 2012. Total revenues were at €5.1 billion, with mobile revenues at €3.204 million – a fall of 17.4 percent.
SFR is the second-biggest telecom operator in France and is currently working on its 4G rollout.
Vivendi has already agreed a deal to sell its stake in video game business Activision Blizzard and is in discussion to sell Maroc Telecom to Etisalat.
If the latest suggested split was to be approved and go ahead, it would make SFR an independent company, competing with mobile giants Orange and Bouygues.
Alongside the announcement about the proposed split, Vivendi also confirmed that its biggest shareholder, Vincent Bollore, is to become vice-chairman.