Wednesday, June 04, 2008

Ambac Financial Dropped From S&P 500 Index

Standard & Poor's announced Ambac Financial (ABK) will be removed from the S&P 500 Index after the close of trading on June 10th. Ambac will be replaced by Lorillard. According to S&P:

Lorillard is being distributed to the public via a two-tier process involving 1) the retirement of the tracking stock Carolina Group (NYSE:CG), in exchange for which approximately 62% of Lorillard’s common stock will be issued, and 2) an offer in which shares of S&P 500 constituent Loews Corp. (NYSE:LTR) can be exchanged for the remaining shares of Lorillard. As of today’s close of trading Ambac’s market capitalization was roughly $860 million, ranking 500th in the index.
Lorillard is a producer and seller of cigarettes, under brand names including Newport, Kent, True, Maverick and Old Gold.

(click on charts for larger image)

Carolina Group and Ambak Financial stock chart June 4, 2008

No comments :