(Corrects headline and first three paragraphs to delete
reference to AIG rejoining the S&P 500 index; AIG is joining the
S&P 100 but never left the S&P 500)
DETROIT, June 3 General Motors Co will
rejoin the S&P 500 index this week, marking a key milestone in
the recovery of a company that needed billions of dollars to
stay afloat during the financial crisis.
GM will return to the S&P 500 after the stock market closes
on Thursday, the S&P Dow Jones Indices said on Monday. At the
same time, American International Group Inc will join
the S&P 100 index.
The move represents a symbolic victory for GM, which has
taken steps to overhaul its operations and return to viability
since its near-collapse in 2009.
Companies in this index are considered leaders in their
industry, the S&P said on its website. Returning to the index
will help boost shares, particularly important in the case of
GM, which is still partially owned by the U.S. government.
AIG received $182 billion in U.S. funds, while GM took $50
billion during the economic recession in 2008 and 2009. The
bailouts were highly controversial, but government officials
said they were necessary to stabilize the weak U.S. economy.
In December, the U.S. Treasury Department announced it was
selling its remaining stake in AIG. Taxpayers made a profit on
the AIG bailout, a once unthinkable outcome.
Later that month, the U.S. Treasury said it would exit GM by
early 2014. But unlike AIG's case, the U.S. government is likely
to lose billions of dollars on GM.
GM will replace H. J. Heinz Co in the S&P 500 and 100
indexes, while AIG will replace Baker Hughes Inc in the
S&P 100 index, S&P said.
(Reporting by Deepa Seetharaman; Editing by Stephen Coates)