Microsoft top again...for a few hours

THE battle to claim the coveted title of the world's biggest company has become a neck-and-neck struggle, with Microsoft and General Electric swapping top spot on an almost hourly basis.

Just a few billion pounds separates the arch-rivals in terms of stock market value.

With Bill Gates' software giant worth £196 billion and US conglomerate General Electric weighing in at £195 billion, even a small percentage movement in either company's share price can tip the balance.

Microsoft's high-flying position may come as a surprise. The company founded by Gates and Paul Allen in a hotel room in Albuquerque, New Mexico, in 1975, first claimed top spot four years ago when it overtook GE, which had been number one for many years.

But when the internet bubble burst two years ago, the fall from grace of technology stocks was swift. GE was able to resume the mantle as 'old economy' companies came back into fashion among investors.

Microsoft's market value was battered and Gates's personal wealth dwindled by more than £40 billion. He is down to his last £25 billion.

Cisco Systems, another technology hot stock, has fared worse. At the height of the dotcom boom, it briefly became the world's biggest company with a market value of almost £400 billion.

But its market value has shrunk by more than 80% and it no longer even makes it into the top 20.

By comparison, Microsoft has made a stronger showing in recent months. Unlike other new technology firms, it makes a lot of money and is cash-rich, which has helped it hold its value while rivals lost theirs.

Our tables show that only two British companies make the global top ten, BP and GlaxoSmithKline.

BP is at number six but it is still in the shadow of another oil giant, Esso owner Exxon, which a decade ago was the world's biggest company, with a market value of £66 billion.

Another oil stock, Shell, reached second place in Forbes magazine's global standings in 1992 when valued at £55 billion, but it has not grown fast enough even to stay in the top ten.

Creeping into the premier league is GlaxoSmithKline.

The world's biggest pharmaceuticals company was formed from the merger of Glaxo and SmithKline Beecham two years ago. The pairing has so far failed to impress investors as doubts grow about whether it will be able to come up with new ' blockbuster' drugs.

Buying UK supermarket chain Asda helped retail giant Wal-Mart to remain near the top of the list.

The retailer, ranked number four by market capitalisation, consoles itself with being the world's biggest company in terms of sales.