Shares in Evotec (EVTG.DE) gain 7 percent as traders and analysts say the biotech company is a likely candidate to replace IDS Scheer IDRG.DEin the Frankfurt technology index .TECDAX.
Market strategists say Deutsche Boerse could remove IDS Scheer from the technology index as early as next week after its free float dips below 10 percent due to its takeover by fellow TecDax peer Software AG (SOWG.DE), which has been approved by antitrust authorities. [ID:nLE267728] According to Deutsche Boerse rules, IDS Scheer should be removed from the index up to 2 days after its free float drops below the mandatory 10 percent. Current free float is around 11 percent, according to Thomson Reuters data.
"Evotec is really the only replacement candidate which comes to mind," says UniCredit strategist Christian Stocker.
Analyst Klaus Stabel from ICF Kursmakler concurs, but adds that XING (OBCGn.DE) und PNE Wind PNEGnk.DE might also have slight chances for inclusion.
Evotec was one of the original members of the technology gauge, launched in March 2003, but was removed fours years later.
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