Shares of MetroPCS Communications jumped Tuesday, a day after Standard and Poor's added the company's stock to the S&P 500 index.
MetroPCS, a Richardson, Texas-based wireless service provider, replaced Tyco Electronics Ltd., which is disqualifying itself from the index by reincorporating in Switzerland.
A move onto the S&P 500 often causes a bump in the stock price as mutual funds that track the performance of the index add shares.
MetroPCS shares rose 82 cents, or 6 percent, to $14.44 in morning trading after climbing as high as $15.25 earlier in the session.
Meanwhile, Tyco Electronics said that at yesterday's Special General Meeting shareholders approved all proposals that are required to change the company's place of incorporation from Bermuda to the canton of Schaffhausen,Switzerland.
Tyco shareholders also approved a distribution to shareholders in the form of a capital reduction that will be paid in U.S. dollars in an amount equal to US$0.16 per share. Payment of the distribution will be made to holders of record on the cutoff date (i.e., record date) upon effectiveness of the capital reduction, which is expected to be in the quarterly period ending September 25, 2009.