Woolworths float to knock Baltimore out of FTSE 250

Woolworths is set to replace Baltimore Technologies in the FTSE 250 index when it floats next week.

Woolworths is due to add to Baltimore's troubles when it is spun off from Kingfisher on Tuesday.

The switch caps a grim week for the Dublin-based internet security company, which was in the prestigious FTSE 100 at the end of last year.

Earlier this week, it announced plans to cut 220 jobs and dispose of a number of non-core interests as it faces up to the tech slowdown.

Index experts at the Footsie say Baltimore, which had a market value of £113.9 million at close of trading last night, would be listed as a SmallCap company.

They also assessed Woolworths' market capitalisation as £300m, based on Kingfisher's own value of £5.11bn.

Woolworths' demerger was due to be agreed by Kingfisher shareholders at an extraordinary general meeting in London this morning.

Shares will begin trading on the London market on Tuesday, although it is thought the starting price could be lower than hoped for at around 23p.

The listing ends a long-running saga over the future of Woolies, which has former Railtrack boss Gerald Corbett as its executive chairman.

Woolworths will be floated alongside Kingfisher's music chain MVC, e-commerce music site Streets Online and CD, DVD and video distributor Entertainment UK as part of a new Woolworths Group.