S&P announced, at that time, that all S&P U.S. index additions would be made using the added companies' half float-adjusted market capitalization, rather than full market capitalization. This strategy was implemented in light of S&P’s goal of avoiding unnecessary turnover, and would continue until March 18, 2005, at which point the U.S. indices will transition in their entirety to a half float-weighted structure.
This transaction temporarily affected the shares outstanding and the investable weight factor for News Corp. -- a constituent of the Global 100 as well as the S&P 500 index – reported in the Global 100 index files. The S&P Global 100 has always operated under a full-float methodology. Effective Friday, March 18 2005, after the close of business the shares outstanding for the company will be adjusted to 2,938,341,000 with an investable weight factor of 0.7500.
Please note, this is a technical adjustment to Global 100 data files only. It does not affect the float adjusted shares or the weight of News Corp in the index.
Additions to and deletions from an S&P equity index do not in any way reflect an opinion on the investment merits of the companies concerned.
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