BlackRock, Inc. (NYSE: BLK) is finally getting the respect it deserves. The asset manager is being added to the S&P 500 Index. The index had held this addition up for years due to the Bank of America Corporation (NYSE: BAC) ownership with a stake that had been as much as 34% inherited from its Merrill Lynch acquisition.
Genzyme Corporation (NASDAQ: GENZ) is being acquired this Friday by Sanofi-Aventis (NYSE: SNY), and BlackRock is replacing Genzyme at the close of trading on Friday. This move gives investors and index traders a mere three sessions to acquire the bulk of these BlackRock shares.
What was interesting is that the various BlackRock mutual funds and advisory accounts also held a massive stake in Bank of America. At one point it was the largest BofA holder with some 5% or more. Now BlackRock ranks third with a 2.59% stake in BofA in its various funds and advisory accounts.
There is another take to consider here. Many index watchers expected that General Motors Corporation (NYSE: GM) would be the next of the big-cap stocks to join the S&P 500 Index. BlackRock has long been on that list as well, but many may have expected that GM would get added first. GM shares are actually up 0.3% at $31.20.
BlackRock shares are up 5.1% at $196.00 after a $186.50 close on Tuesday; its 52-week range is $138.42 to $221.78.
JON C. OGG