Transocean to replace Dell in S&P 500

Transocean to replace Dell in S&P 500 on Oct. 28

Associated Press

NEW YORK (AP) -- Transocean Ltd. will replace computer maker Dell Inc. in the Standard & Poor's 500 index on Oct. 28, the S&P said on Monday.

Switzerland-based Transocean provides offshore contract drilling services for oil and gas wells. Dell is being acquired and taken private by its founder Michael Dell and private equity firm Silver Lake Partners. The company's shareholders have approved a $24.8 billion buyout offer.

Shares of Transocean rose $1.87, or 4 percent, to $48.44 in after-hours trading. The stock had closed up 68 cents at $46.57.

Stocks typically gain when they added to indices because mutual funds and other institutional investors that track those indices are expected to update their portfolios by purchasing shares of the newly added companies.

S&P Dow Jones Indices LLC is part of McGraw Hill Financial.

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