The creation of BTR Siebe, the world's largest maker of factory controls and automation equipment, was approved after a court hearing rejected shareholder complaints about the transaction on procedural grounds. A company's inclusion in a major index can positively affect its share price, as investors and fund managers frequently target the shares and the indices for share purchases. The merger of the companies signals the consolidation that is taking place worldwide in the engineering industry.
BTR SIEBE, the engineering company formed last week after Siebe's takeover of BTR rose 21 per cent when the new shares started trading. The new conglomerate immediately became a member of the FT-SE 100 stock index.