American Airlines Replaces Allergan in S&P 500

24/7 Wall St.

NYSE-flagAmerican Airlines Group Inc. (NASDAQ: AAL) will be the newest addition to the S&P 500, taking the place of Allergan Inc. (NYSE: AGN). The change will occur after the close of trading Friday, March 20, and it will have a couple implications for the index weighting.

Allergan will be removed from the index because it is being acquired by Actavis PLC (NYSE: ACT). The transaction is valued at $66 billion or $219 per share, the exchange will happen in cash and Actavis shares. It is expected to be completed this week, after receiving approval from the European Commission.

The two other major airlines currently in the index are Delta Air Lines Inc. (NYSE: DAL) and Southwest Airlines Co. (NYSE: LUV).

Ultimately what this will mean that American Airlines’ market cap of $35 billion will move into the Transportation sector of the S&P, while Allergan’s market cap of $72 billion will move…

View original post 79 more words


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s