Standard & Poor's said consulting company Accenture PLC
(ACN) will replace Marshall & Ilsley Corp. (MI) in the
S&P500 index next month, when Bank of Montreal's (BMO, BMO.T)
takeover of the regional bank is expected to close.
Accenture shares rose 4.6% after hours on the news. The shares
of a company joining a major index like the S&P 500 tend to
rise as index-tracking funds buy the stock.
The switch, effective after the close of trade July 5, adds one
of the world's biggest standalone consulting companies to the key
index. The company has been strengthening, as market share gains
propel revenue growth. Its most recent quarterly revenue and
earnings per share figures were record highs.
In December, Bank of Montreal agreed to buy struggling regional
bank Marshall & Ilsley in a stock-for-stock deal worth $4.1
billion, which would further strengthen the Canadian banks position
in the Midwest. Marshall & Ilsley has reported more than two
straight years of quarterly losses and has yet to repay the U.S.
government for the $1.72 billion in bailout funds it received after
the financial crisis.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com