Some spinoffs are tiny, others are born big. AbbVie(ABBV) is a case of the latter. With a market cap of over $50 Billion, it begins life as a megacap when it spins off on January 2 from Abbott Laboratories(ABT) and thus replaces the sinking Dell(DELL) in the megacap S&P 100 Index. This was one of several index changes S&P announced to take effect after close of trading on December 31.
AbbVie will also join the S&P 500, replacing Federated Investors, Inc.(FII). Federated will move down to S&P MidCap 400 replacing ITT Educational Services(ESI). ITT will move down to the S&P SmallCap 600 pushing out NCI(NCIT). The Abbott stub, itself a $50 Billion company will remain in both the S&P 100 and S&P 500 indices.
Disclosure: The author holds no position in any stock mentioned
- Record Debt Sale Preps AbbVie For January Spin From Abbott Laboratories (stockspinoffs.com)
- AbbVie to ring in 2013 as an independent drugmaker (fiercebiotech.com)
- Abbott Laboratories Spinoff Begins Trading to Determine Value (biospace.com)