General Motors (GM) will replace H.J. Heinz (HNZ) on the S&P 500 and S&P 100 indices, S&P Dow Jones Indices said late Monday. The move comes after Warren Buffett's Berkshire Hathaway and investment fund 3G Capital revealed plans to take Heinz private.
The reintroduction of GM to one of America's benchmark stock-market indexes is the latest sign of recovery for the automaker that required a taxpayer-funded bailout in 2009 to stay afloat. Shares of the Detroit, Michigan-based company have accelerated close to 20% this year, easily outpacing the S&P 500's 15% 2013 gain.
Separately, American International Group (AIG) will replace Baker Hughes (BHI) on the S&P 100 index. S&P Dow Jones Indices said the oilfield servicing company “is no longer representative of the mega-cap market space” that the S&P 100 tracks. Baker Huges will remain on the S&P 500.
AIG, the insurance giant, also required a U.S. government bailout in 2008 as it teetered on the brink of collapse as a result of its enormous exposure during the financial crisis. Its shares have surged some 26.8% this year, pushing its market value north of $66 billion.