Facebook Twitter

Palm Inc. may soon be added to Standard & Poor’s 500 Index

SHARE Palm Inc. may soon be added to Standard & Poor’s 500 Index

NEW YORK — Palm Inc. is likely to be the next company added to the Standard & Poor's 500 Index, according to Lehman Brothers Inc. analyst Andrew Whittaker.

The equity derivatives analyst, who this month correctly predicted S&P would add Stilwell Financial Inc., said S&P probably will announce this weekend that it's adding the maker of electronic, hand-size organizers.

3Com Corp., which owns 94 percent of Palm and is a member of the S&P 500, plans to spin off to shareholders its stake in the company on July 27.

"Index funds are already going to own Palm and that's key," Whittaker said.

The S&P will likely drop one of the smaller members of the S&P 500, such as Bethlehem Steel Corp., Whittaker said.