NEW YORK, Aug. 16 /PRNewswire/ -- S&P MidCap 400 constituent Leucadia National Corp. will replace KeySpan Corp. in the S&P 500, and Life Time Fitness Inc. will replace Leucadia in the S&P MidCap 400, after the close of trading on Friday, August 24. Keyspan is being acquired by S&P Global 1200 constituent National Grid plc in a deal expected to close on or about that date, pending final approvals.
Standard and Poor's also announces today a clarification of its definition of a U.S. company. A U.S. company, for index purposes, should have the following characteristics:
-- Incorporated in the U.S.
-- Financial reporting should be U.S. GAAP, in U.S. dollars, and the
company should not be considered a foreign entity by the SEC
-- A corporate governance structure consistent with U.S. practice
-- Headquartered in the U.S.
-- The U.S. portion of revenues, operations, fixed assets and employees
should be a significant portion of the total, but need not exceed 50%
-- The common stock should be listed on NYSE, Amex, NASDAQ or NYSE Arca
(ADRs are not acceptable)
-- The company should generally be considered a U.S. company by analysts
and investors
If one of these criteria is not met and there is no other major market in which a company would logically be assigned, S&P may deem it a U.S. company for index purposes.
Leucadia National engages in manufacturing, real estate, medical product development, and winery operations. Headquartered in New York, NY, the company will be added to the S&P 500 GICS (Global Industry Classification Standard) Multi-Sector Holdings Sub-Industry index.
Life Time Fitness designs, builds, and operates sports and athletic, fitness, family recreation, and resort/spa centers. Headquartered in Eden Prairie, MN, the company will be added to the S&P MidCap 400 GICS Leisure Facilities Sub-Industry index.
Following is a summary of the changes:
S&P 500 INDEX -- August 24, 2007
COMPANY GICS ECONOMIC SECTOR GICS SUB-INDUSTRY
ADDED Leucadia National Financials Multi-Sector Holdings
DELETED Keyspan Utilities Multi-Utilities
S&P MIDCAP 400 INDEX - August 24, 2007
COMPANY GICS ECONOMIC SECTOR GICS SUB-INDUSTRY
ADDED Life Time Fitness Consumer Discretionary Leisure Facilities
DELETED Leucadia National Financials Multi-Sector Holdings
Additions to and deletions from an S&P equity index do not in any way reflect an opinion on the investment merits of the companies concerned.
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