Wood Group in, Alliance Trust out

Wood Group is to join the FTSE 100 index of Britain's biggest companies while Alliance Trust will drop out, it was confirmed last night.

Broadcaster ITV and wealth manager Hargreaves Lansdown will also move into the London Stock Exchange's top flight. Distribution group Bunzl and African Barrick Gold are set to slip back into the FTSE 250 index, the FTSE Group, which calculates the FTSE 100, said.

There are fears that Alliance Trust's stock might fall on the move, widening the gap between the value of its shares and the value of its assets.

A spokeswoman for Dundee-based Alliance Trust, which is headed by chief executive Katherine Garrett-Cox, said: "While we are disappointed to no longer be part of the FTSE 100, it has never been a strategic objective to remain in the index.

"Alliance Trust will continue to use its fundamental approach of seeking stock-specific investment opportunities to meet the needs of our shareholders and deliver superior returns."

The promotion of Aberdeen-based Wood Group makes it the third Scottish firm in the index that has no women on its board, alongside generator firm Aggreko and industrial group Weir.