May 27, 2020 / 1:51 PM / 2 months ago

REFILE-INWIT set to join Italy's blue-chip index in June - traders

(Fixes typo in lead)

MILAN, May 27 (Reuters) - Italian mobile tower company INWIT , jointly controlled by Telecom Italia (TIM) and Vodafone, is expected to enter the Milan bourse’s blue-chip index, starting from a reshuffle next week, two traders said on Wednesday. A quarterly review of the companies included in Italy’ FTSE MIB is scheduled for June 3, with traders seeing luxury fashion group Salvatore Ferragamo as a possible candidate to leave the index.

The towers group has a market capitalisation of 5.5 billion euros ($6.05 billion) compared with Ferragamo’s 1.85 billion euros.

The changes to the index, which are based on a number of factors including market capitalisation and free float, will be effective from June 22. Inclusion in the index usually boosts a company’s visibility, given the FTSE MIB is seen as a point of reference for the performance of Milan’s bourse.

“INWIT should enter the main index after TIM and Vodafone in April sold an 8.6% combined stake in the company thus increasing the stock free’s float,” one of the traders said. Both asked not to be named.

INWIT was not immediately available for a comment, while Ferragano declined to comment when contacted by Reuters.

Shares in INWIT were down 2% by 1345 GMT and Ferragamo shares were up are by 2.4%.

INWIT shares have risen more than 12% since the beginning of the year, while Ferragamo’s have lost more than 38%, partly because of the coronavirus emergency.

$1 = 0.9091 euros Reporting by Giancarlo Navach; editing by Barbara Lewis

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