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Monday, 5 March, 2001, 18:35 GMT
Autonomy faces FTSE relegation
Autonomy's share price
Autonomy 's share price has been in free fall
UK intelligent software producer Autonomy is facing relegation from the blue chip FTSE 100 index after just three months.

The company's share price has taken a battering since the New Year, as investors pile out of high tech stocks.

And despite a partial recovery on Monday, when its shares closed up 5.21% at 1,252 pence, the software developer is not thought likely to survive this week's quarterly review of the FTSE 100 index.

International Power, the renamed National Power, is also tipped for the drop.

Dramatic year

FTSE International, which compiles the blue chip index, will make its final decision on Wednesday, based upon Tuesday's closing prices.

Brewer Scottish & Newcastle and software group Sema are poised to take the companies' coveted FTSE 100 places.

For Autonomy, led by chief executive Mike Lynch, it will herald the end of a brief and volatile time in the FTSE 100, since joining the index in December.

And for Sema, which is tipped to go back into the FTSE 100 following its December relegation, its return is set to be temporary, as it agreed a takeover bid from Franco-American firm Schlumberger in February.

The likely changes follow a dramatic year of reshuffles in the Footsie, which has charted the highs and lows of technology shares and old economy stocks.

Scottish & Newcastle was relegated to the FTSE-250 Index at FTSE's March reshuffle, but promoted back to the blue chips in June, before being dropped again in September.

Along with the FTSE-100 changes expected on Wednesday, former building society Bradford & Bingley and low cost airline EasyJet are tipped to make an entrance into the FTSE-250.

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15 Feb 01 | Business
Autonomy reports first annual profit
05 Jan 01 | Business
Strong growth boosts Autonomy
05 Dec 00 | Business
Blue chip index sheds tech stocks
15 Nov 00 | Business
Autonomy earnings beat forecasts
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