Invensys and RSA face FTSE chop

Stephen Foley
Saturday 08 March 2003 01:00
Comments

The quarterly reshuffle of the FTSE 100 next week will seal the humiliation of Invensys, the engineering conglomerate hit by a profits warning last month.

It has dropped out of the top 200 UK companies by market value, and looks set to be one of four companies demoted to mid-cap status.

The shake-up will solve a headache for Lord Marshall of Knightsbridge, who currently falls foul of the Higgs recommendations on corporate governance by chairing two FTSE 100 companies, Invensys and British Airways. Neither looks set to remain in the premier index, when the rejig is announced on Wednesday.

And it also resolves a problem for John Napier, the chairman of Kelda, the owner of Yorkshire Water, which is on course for one of the vacant blue-chip places. He is set to become chairman of Royal & SunAlliance, but the beleaguered insurance group is headed for demotion.

There are two trading days left before the final changes are decided, but if last night's situation prevails, Rolls-Royce is the fourth company that will be ejected.

Kelda will be joined in the FTSE 100 by newcomer Provident Financial, a consumer finance group, Cable & Wireless and the Foreign & Colonial investment trust.

The industrial giant GKN is hovering just above the threshold for demotion, while Rank, the gaming group, is an outside bet to regain its blue-chip status.

The fall from grace by Invensys is one of the most dramatic since the FTSE 100 was founded in 1984. The group has been a constituent since it was created from the merger of BTR and Siebe four years ago. In that time, it has launched waves of redundancies and sold businesses, slimming down from a global workforce of 100,000 to less than 55,000 – and losing 95 per cent of its stock market value.

Its shares have plunged 66 per cent since its Valentine's Day profits warning, which it blamed on a sales downturn.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in