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Article: Making index's cut.(HEALTH CARE & BIOTECH)(HCP Inc)(Brief article)
- Article from:
- Los Angeles Business Journal
- Article date:
- March 31, 2008
- Author:
CopyrightCOPYRIGHT 2008 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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HCP Inc. joins the Standard & Poor's 500 index Monday, and issued a bunch of new shares to celebrate--sort of.
The Long Beach-based health care real estate investment trust agreed to sell 12.5 million shares to several index mutual funds based on the S&P 500. The funds are required to own broad swaths of companies in the stock market index. Seeking to ensure the move to the index would not artificially drive up HCP's stock price, the REIT newly issued the shares.
The company did not state how much of a dilutive effect the transaction would have on shareholders, but the issuance would represent only 5.7 percent of the company's 217 million outstanding ...