Genworth to Join S&P 500

Genworth Financial Inc., the Richmond, Va.-based insurance company whose units include the former GE Capital Mortgage Insurance Corp., Raleigh, N.C., will be added to the S&P 500 at the close of trading on Dec. 1, according to Standard & Poor's.It will be replacing the 500th-largest company in the index, Calpine Corp., whose sub-industry is listed as independent power producers and energy traders. In a related announcement, GE, which spun off Genworth in May 2004 and still holds a substantial amount of its shares, will be selling 38 million shares of Genworth common stock in a secondary offering that will price after the close of trading Dec. 1. GE said the timing of the offering "will allow shares to be sold to meet anticipated investor demand for Genworth shares" when it becomes part of the S&P 500. GE added that it will not sell any more Genworth shares this year, but reiterated that it will totally divest itself of Genworth by the end of 2006. Morgan Stanley & Co. is the sole bookrunner and manager for the offering. Genworth closed on Nov. 29 at $34.00 per share, opened the following day (after the S&P announcement) at $34.99 per share, and as of midday Nov. 30 had settled back to $34.35 per share.