STOCKS NEWS EUROPE-VW drops, investors ready for DAX exit

Ordinary shares in Volkswagen (VOWG.DE) fall 1.8 percent, making them the sharpest decliners among the largely flat Frankfurt large-capindex .GDAXI,as traders say investors are preparing for the stock's eventual exit from the DAX top-30 index. "Investors are slowly removing VW ordinaries from their portfolios," says a Frankfurt-based trader.

A group of options held by the Qatar Investment Authority expire mid-December and should the group exercise the options as expected it will push VW free float below the Deutsche Boerse's required 10 percent threshold.

VW's preference shares (VOWG_p.DE) have been highlighted as a possible replacement for VW's ordinaries and they are 2 percent higher.

Shares in HeidelbergCement (HEIG.DE) have also been named as a DAX contender after the company pushed through a 2.3 billion euros ($3.43 billion) capital increase. They are 0.9 percent higher.

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