New Opening In FTSE 100

A vacancy will arise in the UK's benchmark FTSE 100 index as a result of the proposed merger between Glaxo Wellcome and SmithKline Beecham. Approval of the merger will automatically create a space for a reserve list stock to move into the FTSE 100 index.

The new constituent will be selected at close of business on Thursday 21 December. The stock with the highest ranking market capitalisation from the reserve list on that day will enter the FTSE 100. Subject to gaining all necessary approvals, constituent changes are expected to be applied at close of business on Friday 22 December.

The official closing auction prices on SETs will be used to value GlaxoSmithKline and the incoming reserve stock. The current reserve list was announced by FTSE at the regular quarterly review on December 06. Included in the list are previous FTSE 100 constituents Scottish and Newcastle PLC, Hanson PLC, and Enterprise Oil PLC, while Smith and Nephew PLC, Matalan PLC, and Morrison (Wm.) Supermarkets PLC are awaiting a debut in the UK's premier index.

Mark Makepeace, FTSE CEO commented: "FTSE indices, including the FTSE 100, have seen an unprecedented number of constituent changes throughout 2000. This volatility is simply a reflection of the underlying market activity."