ITV kicked out of FTSE 100
UK commercial broadcaster ITV will lose its position within the Financial Times Top 100 companies next week. The FTSE 100 is the benchmark for British companies and individual investors as well as tracker and similar funds frequently tick within the FTSE for their core holdings.
But ITV has tumbled and fallen this year, by more than 60% over the last year. Sept 4 saw ITVís share price at 43.9p, down from about 70p back in April, for example. ITV now has a market capitalisation of £1.7bn. Back in November 2006 BSkyB bought a 17.9% stake in ITV for £940m (at 135p a share). That sort of spend today would have delivered more than 50% of ITV Ė had Sky been permitted to make such an acquisition. Indeed, it is that Sky overhang thatís one of the reasons that ITV is in the share price toilet. A decision from the UK regulator on Skyís ownership is expected this month.
The Stock Exchange ruling should not be seen as any sort of criticism of ITV. The decision to relegate the stock is forced on the exchange by its own rules. The biggest media company in the FTSE 100 is BSkyB (with a market cap of £8.3bn).