MILAN, Nov 27 (Reuters) - Italian automatic packaging machine maker IMA IMAI.MI is expected to replace Banca Generali (MI:GASI) BGN.MI in Milan's blue-chip index .FTMIB after a quarterly review scheduled for Dec. 2, two traders said on Friday.
The changes to the index, which are based on a number of factors including market capitalisation and free float, will be effective from Dec. 21.
Inclusion in the index usually boosts a company's visibility, given the FTSE MIB is seen as a point of reference for the performance of Milan's bourse.
IMA has a market capitalisation of 2.9 billion euros ($3.46 billion) compared with Banca Generali's 3.25 billion euros, but the company has seen a big jump in volumes in recent weeks after Sofima, IMA's top investor, bought further shares in the company following an investment in the holding itself by BC Partners.
IMA's inclusion in the blue-chip index will likely prove temporary as the company is due to be de-listed in coming months following a mandatory tender offer by Sofima through IMA BidCo which is expected to kick off in December.
"If Banca Generali leaves the index, it would be the first in the reserve list so it would likely be re-added to the index if and when IMA is de-listed following the mandatory tender offer," one of the brokers said.
FTSE Russell, the company managing the quarterly review of the index, declined to comment. ($1 = 0.8375 euros)