FEATURE: ANALYSIS
strong personalities and dedicated to
turning round underperforming assets. By
the mid 1990s, however, such
conglomerates were falling out of favour,
particularly with institutional shareholders.
Start Value Current
Company (bn) status
Hanson was broken up, latterly
concentrating on building materials before
Tesco 0.560 FTSE 100 constituent.
being acquired by Heidelberg Cement in
Reckitt & Colman 0.543 Merged to form Reckitt Benckiser.*
Hammerson Property 0.542 Hammerson is a FTSE 100 constituent.
2007. Th e demise of Trafalgar House was
MEPC 0.540 Acquired by Leconport Estates and taken private.
more problematic. Losses began to accrue
Ferranti 0.538 Forced into administration in 1993.
across the group in the 1990s and the
British Electric Traction 0.536 Acquired by Rentokil, now Rentokil Initial.
company was eventually acquired by
Redland 0.532 Acquired by Lafarge.
Kvaerner, the Norwegian shipbuilding and
Trafalgar House 0.532 Acquired by Kvaerner. Broken up.
engineering group.
BPB Industries 0.530 Acquired by Saint-Gobain.
Cadbury Schweppes 0.520 Cadbury is a FTSE 100 constituent.
VALUATION INDICATORS
Sedgwick 0.505 Acquired by Marsh & McLennan.
Th e past 25-year period has not only
Royal Bank of Scotland 0.498 FTSE 100 constituent.
Blue Circle Industries 0.495 Acquired by Lafarge.
witnessed considerable volatility in many
Whitbread 0.489 FTSE 100 constituent.
equity markets, including the UK, it has
Harrison & Crosfi eld 0.483 Name changed to Elementis* in 1998.
also been a period during which
BICC 0.473 Renamed Balfour Beatty* after sale of cable business.
investors have been forced to downgrade
Smith & Nephew 0.471 FTSE 100 constituent.
their long-term return expectations.
British Home Stores 0.471 Merged to form Storehouse. Later bought out by Philip Green.
Indeed, the FTSE 100 index was
British Aerospace 0.458 Acquired Marconi Electronic Systems to form BAE Systems.*
Courtaulds 0.448 Broken up. Courtaulds Textile now part of PD Enterprise (HK).
launched into a world where an equity
risk premium of between 7% and 9% a
Reed International 0.440 Merged to form Reed Elsevier*.
year was considered a reasonable
Bowater Corporation 0.425 Bowater renamed Rexam*, 1995.
United Biscuits 0.412 Acquired by private equity consortium.
expectation. A fi gure of between 2% and
Guest Keen & Nettlefolds 0.391 Renamed GKN**.
4% is now the norm.
Northern Foods 0.387 FTSE 250 constituent.
Th is period has also been one of
Pearson (S) 0.383 FTSE 100 constituent.
growing interest in, and intense debate
Rowntree Mackintosh 0.380 Acquired by Nestlé.
on, the behavioural aspects of markets
House of Fraser 0.380 Acquired by Baugur.
and investors. Greed, fear and herding
Berisford (S & W) 0.379 Name changed to Enodis. Acquired by Manitowoc, 2008.
Wimpey (George) 0.377 Merged to form Taylor Wimpey**.
have become commonly recognised as
emotional motivators in markets. Some
Exco International 0.374 Acquired by British & C’wealth. Later merged to form ICAP*.
Pilkington Brothers 0.373 Acquired by Nippon Sheet Glass
Rank Organisation 0.372 Absorbed by The Rank Group,1996**.
STATS.
Burton Group 0.363 Re-named Arcadia. Later acquired by Philip Green vehicle.
P&O 0.356 Acquired by Dubai Ports World
TABLE 4: THE BEST OF THE SURVIVORS
Sun Life Assurance 0.353 Merged into the AXA Group.
% Gain
Johnson Matthey 0.344 FTSE 100 constituent.
Dalgety 0.341 Merged to form Sygen. Sygen later acquired by Genus.**
British American Tobacco 3896
Globe Investment Trust 0.341 Acquired by British Coal Pension Fund.
British & Commonwealth 0.338 Entered administration, 1990.
Tesco 1945
Unilever 1499
Imperial Continental Gas 0.337 Broken up into Contibel (later SUEZ-Tractebel) and Calor.
Reckitt Benckiser 1423
English China Clays 0.335 Acquired by Imetal. Imetal later re-named Imerys.
GlaxoSmithKline 1364
RMC Group 0.332 Acquired by Cemex.
Fisons 0.328 Broken up. Rump acquired by Rhone-Poulenc Rorer.
Reed Elsevier 966
MFI Furniture 0.326 Retail arm sold. Remaining business re-named Galiform***. Associated British Foods 911
Cadbury 843
Barratt Developments 0.309 FTSE 250 constituent.
Ladbroke Group 0.303 Re-named Hilton Group. Later re-branded as Ladbrokes**.
Standard Chartered 809
Edinburgh Investment Trust 0.294 FTSE 250 constituent.
Royal Dutch Shell 686
Magnet & Southerns 0.279 Acquired by Nobia Group.
Scottish & Newcastle 0.276 Acquired jointly by Heineken and Carlsberg. Source: Datastream
*current FTSE 100 constituent **current FTSE 250 constituent ***current FTSE SmallCap constituent
WWW.CFAUK.ORG PROFESSIONAL INVESTOR 45
42-4742-47 FTSE.indd 45FTSE.indd 45 1/6/091/6/09 12:07:1512:07:15Professional Investor Summer 09.47 47 4/6/09 15:41:02
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