Kraft replaces AIG on Dow Jones index

NEW YORK, Sept. 19 (UPI) -- Managers of the Dow Jones industrial average have removed American International Group from its index and replaced it with Kraft Foods Inc.

Editor of the Dow Jones Indexes John Prestbo, said AIG was removed by managing editor Robert Thomson due to "the effective nationalization of AIG and its very low stock price," The Wall Street Journal reported Friday.

Government regulators seized control of AIG Wednesday. The company's share values have dropped 97 percent in less than a year, the Journal said.

Editors took Altria Group Inc. and Honeywell International off the list of 30 industry leaders earlier this year, replacing them with Bank of America Corp. and Chevron Corp.

In replacing AIG with Illinois-based Kraft, the editors noted the index has not included a food producer since 1985, when General Foods was purchased by Philip Morris.

Editors were also reluctant to add another financial firm at this time.

"We are refraining at this point from adding another stock in the financial industry because of the extremely unsettled conditions," Thomson said.

"We realize this decision leaves the Dow Jones Industrial Average underweighted in financials, and we will address this situation in due course," he said.