S&P 500 to drop Liz Claiborne; add D&B, Republic

NEW YORK Nov 26 (Reuters) - Standard & Poor's on Wednesday said it will remove Liz Claiborne Inc (LIZ.N) from its flagship S&P 500 .SPX stock index, following an 86 percent plunge in the apparel company's share price this year.

S&P said Dun & Bradstreet Corp (DNB.N), the Short Hills, New Jersey-based business information publisher, will replace Liz Claiborne after the market close on Dec 1. It also said Republic Services Inc (RSG.N) will replace Allied Waste Industries Inc AW.N in the index after the Dec 3 close, around when the two trash haulers are expected to merge.

The market value of New York-based Liz Claiborne has tumbled to about $265 million, which S&P said is more appropriate for inclusion in its SmallCap 600 index. The owner of the Juicy Couture, Lucky Brand and Kate Spade brands recently undertook a restructuring to become more of a retailer than a wholesaler and to lessen its dependence on department stores.

Shares of companies joining the S&P 500 often rise because many investors are required to track the index and must buy stocks of companies that enter it. Dun & Bradstreet shares closed Wednesday up $3.66, or 5 percent, at $76.52 ahead of the S&P announcement. (Reporting by Jonathan Stempel, editing by Leslie Gevirtz)