LyondellBasell to replace Sears Holdings in S&P 500
01 Sep 2012
Sears Holdings Corp, an early member of the S&P 500, is being dropped from the index next week and will be replaced by Dutch chemicals company LyondellBasell.
The retailer, which trades on Nasdaq, would exit the index when the market closed on 4 September, with its place taken by LyondellBasell, based in the Netherlands.
Sears had been hit by stressed sales, store shutdowns, brand spinoffs and consumer skepticism, but its retail problems however did not cause its expulsion from the S&P club.
Rather the number of shares Sears made available to the public, known as the ''public float,'' ''has been well below the 50 per cent threshold for inclusion for an extended period of time and is no longer considered representative of the index,'' according to a statement from S&P Dow Jones Indices.
Consequently, Sears might no more be on the radar for many indexed funds that used the S&P 500.
The company said in a statement, it was ''disappointed'' with the decision but stressed that the action did not reflect ''the valuation or performance of the company.''
