LONDON, Feb 29 (Reuters) - Aberdeen Asset Management, which has been hit by a slowdown in emerging markets,and sportswear retailer Sports Direct could be relegatedfrom Britain's benchmark FTSE 100 equity index.
Getting into the FTSE 100 can often fuel further demand fora company's shares, since funds that track the FTSE or invest inthe index can then add that stock to their portfolio, while theinverse is true if a company falls out of the FTSE 100.
A statement on Monday from the London Stock Exchange saidthe two companies could be replaced in the FTSE 100 by gamblinggroup Paddy Power Betfair and private hospital operatorMediclinic International.
Sports Direct, founded and majority owned by billionairebusinessman Mike Ashley, had been impacted by allegations overthe treatment of staff in Britain and a profit warning.
In December, Sports Direct responded to critics of itsemployment practices with the launch of a review of conditionsfor its thousands of agency warehouse workers.
The final changes in the FTSE 100 will be announced afterthe London market closes on March 2 and will take effect fromthe start of trading on March 21. (Reporting by Sudip Kar-Gupta; Editing by Atul Prakash)