General Motors Co. (GM), the largest U.S. auto maker, will
replace ketchup manufacturer H. J. Heinz Co. (HNZ) in the S&P
100 and 500 indices, while insurer American International Group
Inc. (AIG) will join the S&P 100.
The changes are scheduled to occur after the close of trading
Thursday.
Shares of GM rose 3.5% to $35.64 after hours. The shares of
companies joining the S&P 500 often rise because many portfolio
managers try to track the index. To do that, they must buy shares
of the companies that become part of the index.
GM will replace Heinz, which said Monday that it has that it has
received regulatory approval to be acquired by an investment
consortium comprised of Berkshire Hathaway Inc. (BRKA, BRKB) and an
investment fund affiliated with 3G Capital. The merger agreement
between the parties was announced Feb. 14 and the deal is expected
to close on or about Friday.
AIG will replace Baker Hughes Inc. (BHI) in the S&P 100. The
oilfield-services company, which will remain in the S&P 500,
now has a total market capitalization of less than $21 billion and
is no longer representative of the mega-cap market space.
Write to Debbie Cai at debbie.cai@dowjones.com
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