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Sodexo, Publicis seen as potential CAC 40 entrants

Published 09/03/2010, 07:18 AM
Updated 09/03/2010, 07:20 AM

* Dexia, Accor, Lagardere seen as potential shake-up losers

* NYSE-Euronext won't give date of index cttee meeting

* Says any changes to be announced after the meeting

By Blaise Robinson

PARIS, Sept 3 (Reuters) - Sodexo and Publicis look the most likely newcomers to France's CAC 40 as speculation swirls of an imminent shake-up of the blue chip index, traders and analyst said on Friday.

Dexia, one of the euro-zone's worst performing banking stock this year, Accor, whose market capitalisation shrank after the spin-off of its vouchers unit Edenred in July, and Lagardere, the CAC 40's smallest member by market value, are seen as potential losers in the reshuffle.

The NYSE-Euronext indexes committee which manages the CAC 40 meets every quarter, but the exact date of the meeting is not publicly disclosed.

A spokeswoman for Euronext declined to say when the committee would meet, but said any changes made to the CAC 40 would be announced right after the meeting.

The last changes on the CAC 40 index were made a year ago, when Air France-KLM was ejected from the benchmark and replaced by oilfield services group Technip.

Traders and analysts said any changes were likely to be limited, despite the speculation.

"The committee has traditionally tried to keep the index as stable as possible and just because a company slips in one quarter doesn't mean it will necessarily be out," a Paris-based trader said.

The two official criteria for index inclusion are the free-float adjusted market cap and a stock's trading volume.

"Sodexo and Publicis Groupe are the more balanced candidates. Sodexo's liquidity rank is not as good as Publicis Groupe's but its market cap position is better than the advertising company's," Exane analysts wrote in a note.

"No more than one change is expected in the CAC 40 given current rankings and the conservative policy of the team managing the index," they said.

Shares in the French blue chip index attract investment funds which play index tracking strategies.

Sodexo shares rose 0.5 percent by midsession on Friday, Publicis dipped 0.1 percent, Dexia gained 1.6 percent and Accor put on 1.1 percent. (Editing by David Holmes)

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