By Ian Walker
LONDON--Direct Line Insurance Group PLC (DLG.LN) is expected to
be promoted to the FTSE 100 index for the first time since it
floated in October 2012, replacing can maker Rexam PLC (REX.LN),
based on indicative data from FTSE International Monday.
The insurance firm, which houses its namesake Direct Line, as
well as its Churchill and Green Flag brands, was floated off by 80%
government-owned Royal Bank of Scotland Group PLC (RBS.LN) as part
of the conditions of its bail-out during the financial crisis.
In 2009, the European Commission ordered RBS to sell Direct Line
as a result of the 45.2 billion pound ($74.96 billion)bailout that
RBS received from the U.K. government. RBS no longer has an
interest in Direct line, after selling its remaining interest in
February this year.
The changes will be based on Tuesday's closing share prices and
takes effect from the close of business on Sept. 22.
The FTSE 100 is a share index of the 100 most highly-capitalized
companies listed on the London Stock Exchange. Any company that
falls to 111th and below is automatically ejected from the
top-flight index, while any firm that rises to 90 or above is
automatically promoted.
While Rexam falls outside this range, it is the closest to the
110th threshhold and would therefore move to the FTSE 250 in order
to balance the top index, FTSE International said.
-Write to Ian Walker at ian.walker@wsj.com