French utility EDF is to lose its place in France's blue-chip CAC 40 stock index, ceding the prized slot to Klépierre, the real estate investment company.
The change, which will come into effect on December 21st, ends a 10-year run by the electricity generator and distributor in the country’s top flight of listed companies.
In a statement, state-controlled EDF put its exit down to the fact that the French state holds about 85 per cent of its share capital, severely limiting its free float – one of several factors an independent steering committee responsible for reviewing CAC 40’s members looks at when making its regular reviews.
But it is no secret that EDF’s stock has performed poorly this year on the back of falling energy prices, rising competition as well as the high cost of maintaining its nuclear power plants.
Klépierre, by contrast, has been one of the Euronext index’s rising stars, gaining 19.4 per cent so far this year – and more than 60 per cent over the past five years. With a market capitalisation of about €13.3 billion, it ranks slightly higher than Peugeot, the carmaker.
– (The Financial Times Limited 2015)
