Large French companies are obtaining less than optimal prices when spinning off subsidiaries because they avoid auctions and favour trade buyers over financial investors, a recent study indicates.

The survey was published by Insead Private Equity Club, an association of MBA students with links to the private equity industry. The group, which polled the chief financial officers of France's 500 largest companies, found that only 19% would consider selling to financial buyers, while 82% preferred trade buyers.