Dáil Éireann debate -
Wednesday, 8 Jul 1992

Vol. 422 No. 4

Written Answers. - Proposed GPA Flotation.

Jim Kemmy

Question:

69 Mr. Kemmy asked the Minister for Finance if he intends to raise with the EC Commission and the London Stock Exchange Regulatory Authorities the refusal of the London Stock Exchange to admit the proposed GPA flotation to the FTSE-100-index and the consequential effect this had upon the flotation; and if he will make a statement on the matter.

Minister for Finance (Mr. B. Ahern):

I have received representations from GPA on this matter and I am having them considered by my Department. When this consideration is complete I will review what action, if any, would be appropriate to my functions in the matter.

I am aware that the company has submitted a complaint alleging breach of the European Community's rules of competition to the European Commission which is currently considering the matter.

I understand that GPA, and indeed other Irish companies, have had applications rejected on the grounds that the FTSE 100 is restricted to companies incorporated, and tax-resident in the UK.

I am not in a position to assess what impact exclusion from the FTSE 100 index might have had on the recent flotation of GPA shares which was withdrawn. It is generally accepted, however, that inclusion in the index increases the demand for a company's shares.