1&1 Stock: Index Exit Despite Company Protest

German telecommunications provider 11 will be removed from the SDAX index on July 11, 2025, following parent company United Internet's increased stake to 85.10% of capital and 85.32% of voting rights. This decision by index provider STOXX has sparked significant controversy, with 11 vehemently contesting the characterization of the transaction. The Montabaur-based company argues that United Internet's June offering constituted merely a partial acquisition rather than a complete takeover, maintaining that the remaining 15% free float should be sufficient for continued index inclusion. Despite these protestations, STOXX has held firm to its classification under its takeover rules.

Market Implications

The index removal will trigger technical trading changes, with 11 shares moving from product group SDX1 to GER0 in the Xetra trading system. Index funds tracking the SDAX, HDAX, and TecDAX will need to rebalance their portfolios accordingly, potentially creating additional selling pressure. The Swedish advertising technology company Verve Group, which operates under the less stringent transparency requirements of the General Standard segment, will replace 11 in the SDAX. Interestingly, 11's share price has remained largely unaffected by the announcement, recently trading at €18.60 with slight gains.

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Source StockWorld