Nice work as Lattice joins the FTSE-100

THE curiously-named Lattice, the former gas transmission businessof BG, saw the first light of day as a separate company yesterdayand proudly went straight into the prestigious FTSE-100 Index ofleading stocks.

The move comes as part of the quarterly reviews carried out bythe index manager FTSE International with the next due on December6.

Making room are Woolwich which is being taken over by Barclaysand Freeserve.

The Internet service provider has been hard hit by the downturnin dot.com stocks and growing worries about its long termprofitability.

At 156.75p, it is valued at only #1.59bn - at one time the shareswere as high as 977.5p.

Lattice closed at 154p for a market capitalisation of #5.39bn butanalysts do not expect much volatility in the shares.

Its core Transco business services around 20million homes andoverall is seen as a relatively dull utility business.

BG itself also remains in the Index with a valuation of #9.46bnwith the shares at 270p.

Now shorn of Lattice, there will be increasing speculation thatit is now much more likely to become a bid target with Shellfavoured as the most likely predator. BG has substantialinternational oil and gas assets . P&O Princess Cruises has alsojoined the FTSE-100 Index with its former parent P&O now beingrelegated to the second division FTSE- 250 Index.

This arises from the flotation of the world's third largestcruise company on both the London and New York Stock Exchanges witha market capitalisation of #2bn based on the closing price of 292plast night.

The listing has coincided with its linking up with America Onlinewhereby the Internet provider would make available P&O PrincessCruises marketing to a total of more than 27 million potentialcustomers.

But it is unlikely that the stock will still be in the top indexin December.

P&O itself which contains the port and transport businesses isvalued at #1.65bn with its shares ending at 242.5 p on the day.

Moving up was Shire Pharmaceuticals which has been buoyed by itschild attention deficiency and hyperactivity drug Aderall.

At 1395p, up 32p on expect-ation of the outcome as tracker fundsbegin to buy the stock, Shire is valued at #3.56bn.

Waiting in the sidelines as reserves are Associated British Foodsat #3.11bn, Rolls-Royce at #2.66bn, the Psion hand held computergroup at #2.53bn and the Hanson building and construction materialsgroup at #2.35bn.