By Ian Walker
Newly listed Direct Line Insurance Group PLC (DLG.LN) could join
the U.K.'s leading FTSE100 share index next month when it makes its
regular quarterly review, according to research by Societe Generale
SA Thursday.
Direct Line, which was floated by owner Royal Bank of Scotland
Group PLC (RBS.LN) as part of its requirement of getting a
Government bailout back in 2008, could qualify as the largest
non-constituent as of Nov. 21, Credit Suisse said in a note. Royal
Bank of Scotland still owns 65.3% of Direct Line.
Direct Line, the U.K.'s largest car insurer by policyholders and
revenue, is currently trading 3 pence higher, or 1.78%, at 200
pence giving it a market capitalization of 2.96 billion pounds
($4.71 billion), compared with its IPO price of 175 pence Oct.
11.
Societe General also said if the $70 billion merger of Swiss
commodities broker Glencore International PLC (GLEN.LN) with
Anglo-Swiss miner Xstrata PLC (XTA.LN) completes before the review,
TUI Travel PLC (TT.LN) could replace Xstrata in the top flight.
The official announcement of changes, which is subject to the
approval of the FTSE EMEA Committee, will be released after the
market closes Dec. 12.
The FTSE100 is a share index of the 100 most highly-capitalized
companies listed on the London Stock Exchange.
Any company that falls to 111th and below is automatically
ejected from the top-flight index, while any firm that rises to 90
or above is automatically promoted.
Write to Ian Walker at ian.walker@dowjones.com
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