UPDATE 2-Beleaguered Colonial exits Spain's blue chip index
(Releads with Colonial leaving Ibex, updates shares)
By Clara Vilar and Sonya Dowsett
MADRID, March 13 (Reuters) - Spanish property firm and bid target Colonial (COL.MC) dropped out of Spain's blue-chip index on Thursday to be replaced by engineering group Tecnicas Reunidas (TRE.MC) in a move unforeseen by analysts.
Analysts polled on Tuesday had expected the Ibex 35 .IBEX to remain unchanged after the committee that runs the list held its quarterly meeting on Thursday.
Debt-laded Colonial, at the centre of a contorted partial takeover from a Middle Eastern sovereign wealth fund, has lost over 80 percent of its value from a 2007 high, and now has a market capitalisation of less than 2 billion euros ($3 billion).
The shares first tumbled in late December when shareholders unwound derivative positions in stock which was already falling on worries about a sudden slowdown in the Spanish property sector.
The firm said earlier on Thursday a board meeting had ended without a decision on the takeover offer from the Investment Corporation of Dubai, and another meeting had been scheduled for March 18 -- a day before the bid deadline.
Board approval is one of the conditions for the deal.
The two main shareholders in Colonial and ICD agreed on Wednesday to the Dubai fund buying the indebted Spanish property firm's rental assets in a complex, condition-laden transaction.
Under the terms of the deal, Colonial will split its land and property development from the listed company, with investors taking shares in the spin-off.
ICD will then buy at least 50 percent of Colonial shares after the split for 1.19 euros each, although the price could change depending on the value of the debt and assets moved to the land unit.
The deal is conditional on Colonial renegotiating financing with its creditors plus shareholder and board agreement.
Colonial's volatile shares closed 10.6 percent lower on Thursday, after a 15 percent rise on Wednesday and a steep fall on Monday. The shares were suspended on Tuesday. (Additional reporting by Jesus Aguado; editing by Elaine Hardcastle)
