Cisco, Travelers to replace GM, Citi on the Dow

Cisco, Travelers to replace GM, Citi on the Dow

Mon Jun 1, 2009 9:29am EDT

NEW YORK, June 1 (Reuters) - The closely watched Dow Jones industrial average reshuffled the deck on Monday, removing both General Motors Corp (GM.N) and Citigroup Inc (C.N) in a widely anticipated move.

Technology bellwether Cisco Systems Inc (CSCO.O) will replace GM, which filed for bankruptcy on Monday morning. Travelers Co (TRV.N), a large home, auto and commercial insurer, will take the place of Citigroup, which has taken billions of dollars from the U.S. government to stay afloat.

Dow Jones & Co said the changes will be effective as of the opening of trading on June 8.

"The parlous state of GM has left us with no choice but to remove it from the Dow. A bankruptcy filing immediately disqualifies a stock regardless of a company's history or its role as a cultural icon," said Robert Thomson, managing editor of The Wall Street Journal and editor-in-chief for all of Dow Jones in a press release.

Dow Jones said Citigroup was removed because of its "large and ongoing" government stake but added it hoped that once the bank has returned to stability it will be reconsidered for inclusion.

Cisco shares rose 3.5 percent to $19.14 and Travelers gained 2.6 percent to $41.75. Citigroup edged up 0.3 percent at $3.73, while GM tumbled 4 percent to 72 cents after being halted. (Reporting by Leah Schnurr and Chuck Mikolajczak; Editing by Padraic Cassidy)