Vivendi SA is considering splitting off its biggest unit, telecommunications provider SFR, in a move that would transform the French conglomerate into a company focused on its faster-growing media businesses, according to four people with knowledge of the discussions.

Talks to separate SFR, the French wireless business that made up almost 40 per cent of Vivendi's 2012 revenue, have gained momentum since a February board meeting, said one of the people, who requested anonymity because the deliberations aren’t public.

Under discussion is a proposal for SFR to ultimately retain most of Vivendi’s debt, which the company is seeking to reduce as it focuses on expanding in media.

No final decision has been made and Vivendi may still settle on an alternative strategy, the people said. – (Bloomberg)