By Nathalie Tadena
Standard & Poor's said it will add biopharmaceutical company
Regeneron Pharmaceuticals Inc. (REGN) to the S&P 500 index,
replacing MetroPCs Communications Inc. (PCS) after its merger with
Deutsche Telekom AG's (DTE.XE, DTEGY) T-Mobile USA unit.
Regeneron's shares rose 2.8% to $216.50 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.
MetroPCS shareholders earlier Wednesday approved the wireless
carrier's merger with T-Mobile USA. The deal is expected to leave
the merged company's public float substantially below the 50%
threshold needed for inclusion in the index, S&P said.
Eagle Materials Inc. (EXP), which manufacturers building
products, will replace Regeneron in the S&P MidCap 400 index.
In turn, retailer Francesca's Holdings Corp. (FRAN) will replace
Eagle Materials in the S&P SmallCap 600 index.
These changes are scheduled to take effect after the close of
trading on April 30.
S&P also said CST Brands Inc., which is being spun off by
Valero Energy Corp., will replace Northern Oil & Gas Inc. (NOG)
in the S&P MidCap 400, after the close of trading on May 1.
Northern Oil & Gas will replace Dolan Co. (DM) in the S&P
SmallCap 600 index. S&P said Northern Oil has a market
capitalization that is more representative of the small cap market
space, while Dolan is ranked number 600 in the S&P SmallCap
index and is no longer representative of the small cap market
space.
Write to Nathalie Tadena at nathalie.tadena@dowjones.com
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