MOrrisons is expected to enter the London blue chip index in next month’s reshuffle, following a stock price surge on an offer by US private equity firm Clayton, Dubilier & Rice.
The grocer’s share price has risen more than 60% since the initial offer in early June and is now valued at around £ 7bn, due to an ongoing bidding war with CD&R and a consortium led by Fortress Investment Group, owned by SoftBank.
Its market capitalization now surpasses some current members of the FTSE 100 index, including £ 4.6bn worth of Love Island broadcaster ITV, and engineering specialist Weir Group, worth £ 4.6bn. 4.3 billion pounds sterling.
Index manager FTSE Russell placed the current mid-cap supermarket – the UK’s fourth largest – on its list of “indicative additions to the FTSE 100” at the end of June. A final decision, based on August 31 closing prices, will be announced on September 1. Its membership, however, could prove short-lived with bidders vying to privatize the channel.
The top flight is an index of the 100 most capitalized companies that are listed in London. Any company that falls below the 111th position is automatically kicked out, while those that reach the 90th or above are promoted.
Other FSTE 100 promotions expected next week include defense firm Meggitt, which is also at the center of a buyout battle.
ITV is expected to be started on the FTSE 250, having only joined the blue chips in June, as well as Weir Group, which joined the group in March.
Just Eat Takeaway.com is also set to be kicked out after its “nationality was reassigned from the UK to the Netherlands, rendering the company ineligible for the FTSE UK Index Series,” FTSE Russell said in a statement.
The demotion of the delivery giants “would lead to the promotion of veterinary pharmaceutical company Dechra Pharmaceuticals, which is currently not eligible to be ranked 96th in the table of largest companies … but as the second company FTSE 250 top ranked, “said Richard Hunter. , Head of Markets at Interactive Investor. This would be Dechra’s first inclusion in the top index.
In turn, the cybersecurity firm Darktrace is able to join the mid-cap index, after its IPO in April on the London Stock Exchange. Shares of the Cambridge-based company jumped 44% in its debut after its initial public offering raised £ 165million. Priced at 250 pence a share, the company had an opening value of £ 1.7 billion.