Standard & Poor's on Wednesday said it will replace McAfee Inc. in its widely watched S&P 500 index because the security software maker is being acquired by Intel Corp.
Health care equipment manufacturer Covidien PLC, which is based in Dublin, Ireland, will replace the Santa Clara, Calif.-based McAfee.
Covidien shares shot up in aftermarket trading, gaining $2.72, or 5.7 percent, to $50.50. Stock added to a major index typically rise on the news because portfolio managers who track the index need to buy the stock.
No date has been set for the S&P 500 switch.
European Union regulators on Wednesday cleared Intel's takeover of McAfee after the company committed to allowing its chips to also work with software from other computer security providers. Intel now expects the $7.68 billion deal to close by the end of the first quarter.