Quanta to replace Ingersoll-Rand in S&P 500

Standard & Poor's announced a reshuffling of its stock indices Thursday, naming electric utility contractor Quanta Services Inc. to replace Ingersoll-Rand Co. Ltd. in the S&P 500 index.

Omaha, Neb.-based diversified manufacturer Valmont Industries Inc. will take Quanta's place in the S&P MidCap 400, while TeleTech Holdings Inc., a call-center and customer-management services provider based in Englewood, Colo., will move to the S&P SmallCap 600 in place of Valmont.

Standard & Poor's said the date of the changes are yet to be announced.

The move comes after shareholders of Ingersoll-Rand, which makes refrigeration equipment and other industrial products, approved the company moving its headquarters to Ireland from Bermuda, thereby making its shares ineligible for the index.

Ingersoll-Rand is one of several companies, such as medical products maker Covidien Ltd. and diversified manufacturer Tyco International Ltd., whose shares have been removed from the S&P 500 after they decided to leave Bermuda for European locations such as Ireland and Switzerland. The U.S. government is cracking down on international businesses which operate in the U.S. but are incorporated in island tax havens like Bermuda and the Caymans.

Ingersoll-Rand said it decided on Ireland because it already has operations there and because of the country's membership in the European Union and its stable regulatory environment. Ireland's low corporate income tax and tax deals with the U.S. make the nation an attractive locale for companies operating in multiple countries.

Quanta, based in Houston, provides services to the electric power, gas, telecommunications and cable television industries. The company's stock shot up $1.39, or nearly 6 percent, to $25.07 in after-hours trading, having closed the regular session at $23.68. Shares of companies added to the S&P 500 often rise, since many investment portfolios are linked to the index.

Shares of Valmont were flat at $73.88 after-hours, while TeleTech, a call-center and customer-management services provider based in Englewood, Colo., saw shares climb 63 cents, or 5 percent, to $13.58.