Seagate To Be Added to S&P 500; Progress Energy To Be Removed
06/25/2012| 06:21pm US/Eastern
By Ben Fox Rubin
Seagate Technology Inc. (>> Seagate Technology PLC) will replace Progress Energy Inc. (PGN) in the S&P 500 index after the close of trading on Friday, due to Duke Energy Corp.'s (>> Duke Energy Corporation) planned acquisition of Progress.
Shares of Seagate jumped 4.7% after hours to $24.36 as the stock will be added to a major U.S. indexes. As of Monday's close, the stock was up 42% so far this year.
Seagate is one of the biggest providers of hard-disk drives, and it has been benefiting from rivals' woes following severe flooding in Thailand that hindered drive manufacturing. Seagate recently boosted its share of the industry with its purchase of Samsung Electronics Co.'s (SSNHY, 005930.SE) hard-drive business. Last month, it unveiled its plans to buy LaCie SA (>> LACIE S.A.) for roughly 146 million euros ($182 million), as the hard-drive maker looks to boost its presence in the consumer storage market.
Duke Energy's $26 billion all-stock deal for Progress was disclosed in January 2011 and would create the nation's largest utility.
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