Bloomberg News

Daily Mail to Replace Cairn in FTSE 100, Broker Says

March 06, 2007

(Corrects to show Tate & Lyle may be removed from the FTSE 100.)

Daily Mail & General Trust Plc (DMGT), publisher of the U.K.'s Daily Mail newspaper, will likely replace Cairn Energy Plc (CNE) in the FTSE 100 Index tomorrow, according to Dresdner Kleinwort.

Schroders Plc, London's biggest publicly traded money manager, is the second-most likely stock to be added to the benchmark, potentially replacing Tate & Lyle Plc (TATE), maker of Sweetener Splenda, said John Carson, an index strategist at Dresdner Kleinwort in London, in an interview.

Companies automatically join the index if they are among the 90 biggest in Britain by market value when the review occurs. Companies that rank 111th or lower are removed from the measure.

Joining an index such as the FTSE 100 can boost a company's stock price because funds that mirror it buy shares of the members. About 30 billion pounds ($54 billion) track the FTSE 100, according to Citigroup Inc.

Any changes to the FTSE 100 will be announced after the close of trading tomorrow and are based on today's closing price, said Jo Mayall, communications executive at FTSE Group in London.

The changes will take effect on March 19.

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net

To contact the editor responsible for this story: Balduin Hesse at bhesse2@bloomberg.net.


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