Updated from 11:21 a.m. EDT
Shares of
Palm
(PALM)
, the handheld computer maker, and those of its parent company,
3Com
(COMS)
, climbed Friday on news that Palm will replace the computer networking equipment maker in the
S&P 500 Index
.
Standard & Poor's
said Palm would replace 3Com in the S&P 500 Index after the close of trading on July 27. 3Com said it would spin off its 94% interest in Palm to 3Com shareholders in a deal expected to close the same day.
3Com will replace
Burlington Industries
(BUR)
in the
S&P MidCap 400 Index.
Shares of Santa Clara, Calif.-based Palm, which went public March 2, Palm finished up 1 9/16, or 4.25%, at 38 5/16, after trading as high as 40. 3Com, which is also based in Santa Clara, closed up 1 3/8, or 2%, at 68, after trading as high as 69 1/2.
