Crisis-hit Northern Rock will be booted out of the FTSE 100 Index on Christmas Eve under the biggest overhaul of the index since the September 11 terrorist attacks, it was confirmed yesterday.
The beleaguered lender will be relegated to the FTSE 250 on December 24 after the Foot-sie's latest quarterly review.
Its recent woes saw it fall to 331st place - based on Tuesday's closing share prices - narrowly avoiding the humiliation of a fall straight into small cap territory.
Six others will accompany Northern Rock in being ejected from the elite index as the turmoil in financial markets takes its toll.
Stocks have endured heightened volatility since the summer's credit crunch, which led to Northern Rock's funding crisis and the subsequent run on the bank.
Also on the way out of the top flight is newspaper group Daily Mail & General Trust, now ranked 118th, and in 117th place, sugars and ingredients firm Tate & Lyle, which recently reported a 19 per cent drop in profits.
They will be joined by Currys owner DSG International, which recently announced a 25 per cent fall in first-half profits, Punch Taverns and housebuilder Barratt Developments, which only joined the FTSE 100 in June after its £2.2 billion takeover of Wilson Bowden.
All Bar One and Harvester owner Mitchells & Butlers is also on the relegation list.
Shares in Birmingham-based Mitchells & Butlers, which stands in 120th position, have been gradually drifting downwards since midMay, when they touched the 900p mark, to close at 496.25p yesterday.
The group recently reported slowing sales growth and said costs linked to a shelved property deal with entrepreneur Robert Tchenguiz had risen to £260 million.
Those taking their place in the blue chip index are Cairn Energy, Kelda Group whose time in the index could be short-lived as it is in the process of being taken over, Thomson holiday operator TUI Travel and bus and rail firm First Group.
