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.

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