S&P 500 adds FMC Technologies, drops Covidien

Published: 30 May 2009 18:45:07 PST

NEW YORK, May 28 - Standard&Poor's on Thursday said FMC Technologies Inc, a provider of equipment and systems used in the energy industry, will replace Covidien Ltd in its flagship S&P 500 stock index .SPX> after the close of trading on June 4.

S&P also said the insurer MetLife Inc will replace Covidien in the S&P 100 index of the largest blue-chip companies.

Covidien, a producer of medical products, will leave both indexes because it is moving its place of incorporation to Ireland, making it ineligible for inclusion, S&P said.

Shares of companies joining the S&P 500 often rise because many portfolio managers try to track the index, and must buy shares of companies that enter it.

FMC shares rose $1.07 to $40 after-hours within minutes of the S&P announcement, after falling 1 cent to $38.93 in regular trading. The company is based in Houston.