DOW JONES NEWSWIRES
Standard & Poor's said Tuesday that Alpha Natural Resources Inc. (ANR) would replace Massey Energy Co. (MEE) in the S&P 500 index after the close of trade on June 1.
The change anticipates Alpha's acquisition of Massey, a cash-and-stock deal valued at $7.1 billion that Massey shareholders will vote on that day. The combination would make Alpha the world's third-biggest producer of steelmaking coal. In its latest quarterly results, Alpha Natural's adjusted earnings fell below expectations because of higher costs.
Alpha stock rose 2.3% to $51.05 in after-hours trading. The shares of a company joining a major index like the S&P 500 tend to rise as index-tracking funds buy the stock. Massey stock also rose 1.7% to $61.80 in light trading after hours.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; firstname.lastname@example.org