French property giant Unibail and Franco-Dutch airline Air France-KLM are to join the CAC 40, the main stock exchange index in Paris, on June 18, NYSE Euronext has announced. The companies are to replace insurer AGF and electronics group Thompson. Unibail and Dutch retail property specialist Rodamco Europe are working towards a merger by the end of June that will create the largest listed property company in Europe, with a market capitalisation of almost EUR 22 bn.

French property giant Unibail and Franco-Dutch airline Air France-KLM are to join the CAC 40, the main stock exchange index in Paris, on June 18, NYSE Euronext has announced. The companies are to replace insurer AGF and electronics group Thompson. Unibail and Dutch retail property specialist Rodamco Europe are working towards a merger by the end of June that will create the largest listed property company in Europe, with a market capitalisation of almost EUR 22 bn.

Euronext also said the inclusion of Unibail on the AEX index after the merger is dependant on the amount of shares tendered by Rodamco Europe shareholders for Unibail stock. If the vast majority accepts the bid, with less than 25% not tendering their Rodamco Europe shares, Unibail will replace Rodamco Europe in the index with the same weighting as Rodamco (1.4%).

If more than 25% of the shareholders reject the share exchange, Euronext will ask its steering committee to decide on Rodamco Europe's position on the AEX. 'We expect the majority of the shareholders Rodamco Europe will tender. As such we expect Unibail to replace Rodamco Europe,' researchers at Kempen & Co stated.