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Telecommunications equipment industry

Standard & Poor's Announces Index Changes

Strategic Insights

— 1 min read

Promus Companies Inc. and M/A-Com, Inc. are being replaced in the S&P 500 Index by Harrah's Entertainment Inc. and Tellabs, Inc. after the close of trading on June 30, 1995. Promus Companies is spinning off its hotel unit, which will be named Promus Hotel Corp., and will change its name to Harrah's Entertainment. M/A-Com has agreed to be acquired by AMP Inc., a component of the S&P 500 Index. Harrah's Entertainment owns and operates casino/hotels in various locations, while Tellabs is a manufacturer of digital telecommunications systems.

Key Takeaways:

  • Standard & Poor's will replace Promus Companies Inc. and M/A-Com, Inc. with Harrah's Entertainment Inc. and Tellabs, Inc. in the S&P 500 Index on June 30, 1995.
  • Harrah's Entertainment Inc. will replace Promus Companies in the S&P 100 Index and will own and operate casino/hotels in Nevada and Atlantic City, N.J.
  • Tellabs, Inc. will replace M/A-Com, Inc. in the S&P 500 Communications Equipment/Manufacturers industry group and manufactures digital telecommunications systems used by local telephone exchanges and private phone networks.
  • Promus Hotel Corp. will replace NPC International Inc. in the S&P MidCap 400 Index after the close of trading on June 30, 1995.
  • Promus Hotel Corp. operates the Embassy Suites, Hampton Inn, and Homewood Suites hotel chains.
  • The S&P Equity Services Group calculates and maintains the S&P 500, S&P MidCap 400, and S&P SmallCap 600 stock price indexes, which are widely considered key barometers of stock market activity.
  • Company additions and company deletions from the S&P equity indexes do not reflect an opinion on the investment merits of the company.

Statistics:

  • Over $300 billion is currently indexed to the S&P 500.
  • M/A-Com, Inc. has a market value of $153 million as of June 22, 1995, and will be acquired by AMP Inc., a component of the S&P 500 Index.
  • Promus Hotel Corp. will have a market capitalization of approximately $153 million after the close of trading on June 30, 1995.

Sources:

  • June 23, 1995, press release by Standard & Poor's
  • "Standard & Poor's Announces Index Changes" Business Wire, June 23, 1995.

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