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Nortel Responds to S&P

Nortel fears that getting cut from the S&P 500 and S&P 100 indices may have a short-term impact on its investors

July 10, 2002

1 Min Read

TORONTO -- After the close of trading on the New York and Toronto stock exchanges yesterday, Standard & Poor's announced changes to the S&P indices, replacing the seven non-U.S. companies, including Nortel Networks Corporation (NYSE:NT) (TSX:NT.), currently in the S&P 500 index with seven U.S. corporations. Nortel Networks will also be replaced on the S&P 100 index. These changes are expected to be effective as of the close of trading on July 19, 2002. Commenting on the announcement, Frank Dunn, president and chief executive officer, Nortel Networks, said, "As S&P indicated in their release, the purpose of the change is to put all S&P 500 index members in compliance with S&P's current selection criteria, which require a member to be a 'U.S. company'. We do not expect S&P's announcement to have any impact on our day-to-day business operations. However, we are sensitive to the short-term impact this change may have on our investors." According to S&P's release, Nortel Networks membership in the S&P/TSX 60 index and the S&P Global 1200 index is unaffected by yesterday's announcement. Nortel Networks Corp.

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