Mosaic replacing National Semiconductor in S & P 500
The Mosaic Co. will be added to the S&P 500 index after trading on Friday, replacing National Semiconductor Corp., which is being sold to Texas Instruments Inc.
Mosaic shares rose $2.06, or 3.2 percent, to $65.65 in extended trading after the index change was announced. Stocks that are added to major indices typically rally, because it's expected that mutual funds and other investment vehicles that track the index will buy shares. The stock fell in regular trading, closing at $63.59, down $2.45, or 3.7 percent.
Mosaic, a maker of fertilizer ingredients based in Plymouth, Minn., reported net income of $2.51 billion on revenue of $9.94 billion for the fiscal year ended May 31.
Texas Instruments is paying $6.5 billion for National Semiconductor in a deal that joins two large makers of analog chips used in many consumer-electronics products.
Standard & Poor's said Wednesday the sale is expected to close about Friday, and it would post updates on its website.
National Semiconductor climbed 8 cents to $24.99 in regular trading, then fell 8 cents in after-hours trading.