Ailing Peugeot may get boot from French stock exchange's benchmark CAC 40 index
Peugeot's market-cap of 2.4 billion euros – roughly $3B U.S. – is 77th out of the top 100 companies on Euronext by valuation. That's where the phrase "most significant values" comes in; even though it's already well outside the numeric cutoff, the selection committee for the CAC 40 has discretion and Peugeot is a marquee French company. This is also where politics come in – cutting Peugeot from the top ranks, even if only in name, especially with speculation that the carmaker would be replaced by a Belgian chemical company, would hurt far beyond the company walls.
A meeting of the selecting committee is expected to take place the first week of September, and analysts believe that, short of "an exceptionally 'political decision,'" Peugeot will find itself outside the club. In that case, analysts expect further selling pressure on Peugeot stock to the tune of seven million shares, which would force the its price even lower. The sooner the automaker can get the French government behind its plan to cut its overcapacity in factories and plant personnel, the sooner it can begin to put a stop to the gloom.
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