S&P Makes Index Changes After Spin-Offs
Standard & Poor's made changes to several indexes due to Tyco International and Morgan Stanley spin-offs, and the inability of some companies to meet minimum market capitalization requirements.
After the close of trading June 29, S&P said medical device manufacturer Covidien will replace National Semiconductor in the S&P 100 and contract electronics maker Sanmina-SCI in the S&P 500.
Meanwhile, Tyco Electronics will replace chip maker PMC-Sierra in the S&P 500 and the new Tyco International stock will replace the old ticker in the S&P 100 and 500.
The change comes after Tyco said it is spinning off Covidien and Tyco Electronics in a transaction expected to close June 29.
Sanmina-SCI and PMC-Sierra had market capitalizations that fell below the S&P 500 requirement for a minimum market capitalization of $4 billion.
S&P also said Discover Financial Services will replace networking equipment and software provider ADC Telecommunications in the S&P 500 and ADC will take PH Glatfelter's spot in the S&P MidCap 400.
S&P said it is making the switch because Morgan Stanley is spinning off Discover and PH Glatfelter did not meet the minimum $1 billion market capitalization rule for the S&P MidCap 400.