Three join Footsie in quarterly changes

8th Sep 2010 18:06

Insurer Resolution, pumps manufacturer Weir and engineer Tomkins are replacing Home Retail, Segro and Cable & Wireless Worldwide in the FTSE 100 index. The changes will come into effect on 20 September. Tomkins is unlikely to stay in the Footsie for long because its board has recommended a 325p per share cash offer from Onex and Canada Pension Plan Investment Board. Analysts believe the £2.89bn bid is too low and David Cumming, head of UK equities at Standard Life Investments, has said the offer undervalues the engineering group and its prospects. Even so, it appears that the bid will be successful. The first company on the reserve list is SSL International, but the Durex condoms supplier is itself the subject of a bid, this time from household products firm Reckitt Benckiser. The cash bid values SSL at £2.54bn. This means that publisher and conferences organiser Informa is likely to end up in the Footsie in a few weeks time, assuming both of these bids go ahead. Online grocer Ocado has gone straight into the FTSE 250 index. Other new entrants include Phoenix Group Holdings, Jupiter Fund Management, Kenmare Resources and Avis Europe as well as the three companies demoted from Footsie. Recent issue Promethean World drops out of the 250, along with electronic games retailer Game Group. At the moment Connaught is hanging onto its FTSE 250 place because its shares are suspended. It appears likely, that former AIM-quoted online gaming firm Sportingbet will replace it in the near future.