Invensys set for FTSE 100

By Rebekah Curtis

LONDON (Reuters) - Engineer Invensys (ISYS.L) looks set to enter the FTSE 100 .FTSE in a quarterly index rejig later this month, while stricken house builder Persimmon (PSN.L) may drop into mid-cap territory, FTSE Group said on Thursday.

Ukrainian iron ore producer Ferrexpo (FXPO.L) is also waiting in the wings for possible promotion into the FTSE 100, the index manager said, while mortgage lender Alliance & Leicester (A&L) ALLL.L may face demotion into the FTSE 250 .FTMC.

Companies outside the FTSE 100 that rank among the 90 largest by market capitalisation after the close on June 10 will be reviewed for promotion, while the FTSE 100 members that fall to 111th spot or below will be reviewed for demotion to the FTSE 250.

Any approved changes will be announced after the market close on June 11 and will be applied after the close on Friday, June 20.

Invensys, whose shares have risen about 40 percent so far this year and which was created by the merger of BTR and Siebe in 1999, is ranked 85th by market value according to data from Wednesday's close, FTSE said.

An analyst at Aberdeen Asset Management noted Invensys's rise reflected restructuring and an improved operating performance at the company and added that household goods retailer Home Retail Group (HOME.L), which ranks at 107, may also fall victim to demotion.

Invensys had a 3.3 billion pound debt mountain five years ago before it launched a plan of disposals.

Conversely, A&L and Persimmon have both shed about 40 percent so far this year as credit markets seized up and investors braced themselves for a housing market downturn.