FTSE Russell to announce in July decision on adding Snap shares

SAN FRANCISCO, April 3 Index fund provider FTSE
Russell expects to announce in July whether it will include in
its indexes shares of Snap Inc and other companies
whose share structure denies investors voting rights.

FTSE Russell, which is part of the London Stock Exchange
Group Plc, said on Monday that it will consult with
stakeholders likely starting this month and conclude at the end
of June. The results of the consultation will be announced in
July.

Snap, the parent company of messaging app Snapchat, shocked
many investors with an initial public offering last month that
included a first-of-its kind share structure that offered IPO
investors no voting rights.

“FTSE Russell is aware of concerns raised by some
stakeholders regarding the prospective index inclusion of
securities with no voting rights such as the recent IPO by SNAP
Inc,” according to a statement from FTSE Russell on Monday.

Clients of FTSE Russell include big fund managers such as
BlackRock Inc and T. Rowe Price Group Inc. It
offers popular indexes like Britain’s blue-chip FTSE 100
and the Russell 3000 index of U.S. companies.

Although many investors expressed alarm at Snap’s unusual
governance structure, the company’s IPO was still in such hot
demand that it pulled off the biggest U.S. technology IPO since
Facebook Inc in 2012, with a valuation of roughly $24
billion.

(Reporting by Heather Somerville in San Francisco and Ross
Kerber in Boston; Editing by Lisa Shumaker)

Source: Reuters

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