Softbank Deal to Force Sprint Out of S&P 500 Stock Market Index
Published on: 2nd Jul 2013
Note -- this news article is more than a year old.
By: Ian Mansfield
One of the more subtle side effects of Softbank's takeover of Sprint in the USA is being felt in the S P 500 stock market index.
Although the deal by Softbank to buy a 70% stake in Sprint is still waiting for final regulatory approval, it is widely expected to get that approval.
As a result of the deal, Sprint's public float is expected to fall substantially below the 50% public float criteria necessary for continued inclusion in the index and the company will be removed from the S&P 500 after the close of trading next Monday.
Softbank is buying a 78% stake in Sprint, while the remaining 22% will stay listed on the New York Stock Exchange.
Sprint's place in the index is being taken by Nielsen Holdings, an information and measurement company.