It has been a bad day for media and telecoms companies -- Telewest Communications, Colt Telecom Group and Energis have also been dropped from the FTSE 100.
News of Carlton's expulsion began to emerge last week when its share price hit an eight-year low of 288.5p. Since then its share price has continued an unfettered fall and this afternoon it was trading at 243p.
The company has suffered the fate of falling advertising revenues at ITV and has been under sustained attack from investors over its loss-making ITV Digital joint venture with Granada.
All changes to the FTSE 100 will be applied after the close of business on Friday September 21 2001 and will be effective on Monday September 24 2001.
A mixture of financial and industrial companies has replaced Carlton and other demoted companies. Among those elevated to the FTSE 100 are building society Northern Rock and insurance firm Friends Provident.