Thursday, June 6th, GM and AIG will rejoin the S&P 500 index, a clear sign that the companies have managed to revive and reach a financial turnaround.
GM will replace H. J. Heinz Co in the S&P 100 and 500 indices, five years after the automaker’s near-collapse. Companies which reach the index are seen as the leaders in their industry and a return in the index will definitely boost sales and attract investors. The Government offered AIG funds of $182 billion, while GM took $50 billion in 2009, the same year when the company was removed from the S&P 500.
“The GM team has been working very hard to earn the business of customers around the world and to win the confidence of investors, and rejoining the S&P 500 shows we’re very much on track,” said GM Chairman and CEO Dan Akerson.
After the 2009 bankruptcy GM was 61% owned by the government, but now the Treasury owns only 16% and plans to completely exit by March 2014. In May, GM dropped from the 5th to the 7th place in the Fortune 500 list, being surpassed by Warren Buffett’s Berkshire Hathaway, which climbed from the 7th to 5th place.
Source: The Detroit News