General
WorldCom, US Airways Booted From S&P 500
TSC Staff
05/13/02 - 06:16 PM EDT
Standard & Poor's is removing two beleaguered companies, WorldCom (WCOM Quote) and US Airways (U Quote), from the S&P 500.
WorldCom has been slumping for months as investors fret over the company's viability amid its massive debt load and lowered financial targets. Shares of WorldCom closed Monday at $1.44, a 52-week low, and have been steadily plunging throughout 2002.
US Airways, which last week raised the possibility of filing for bankruptcy if it can't otherwise successfully restructure its operations, ended regular trading at $2.98, also a new low for the last year.
S&P is removing both stocks for what it commonly calls "lack of representation." Apollo Group (APOL Quote), a provider of education programs for adults, and BJ Services (BJS Quote), which offers services to the petroleum industry, will replace WorldCom and US Airways in the S&P 500.
The changes will be effective after the close of trading Tuesday.