Retail property giant Hammerson is poised to dive out of the FTSE 100 as traders fear its imminent takeover of rival Intu will expose it to the pressured shopping centre sector.
Since the announcement of the £3.4 billion takeover deal in December, share values in Hammerson have dropped by 14 per cent and are edging close to falling out of the FTSE 100 in next week’s quarterly reshuffle.
Investors fear that by taking on Intu’s portfolio, Hammerson will dilute its higher-quality estate while increasing its potential exposure to issues facing shopping centres including declining consumer spending power and the rise of online retail.
Across 2017, Hammerson failed to quash these fears after posting a sales dip of 2.6 per cent alongside a 1.3 per cent drop in December.
This drop came despite a 0.4 per cent rise in footfall, significantly above the industry benchmark.
If it should fall out of the FTSE 100 on February 28 its share prices are predicted to continue their decline.