Broadcom Soars on News That It Will Join S&P; 500

Broadcom Corp. achieved a measure of prestige Monday when Standard & Poor’s Corp. said it will add the Irvine chip maker to its S&P; 500 Index, an announcement that sent Broadcom’s stock soaring in after-hours trading.

Broadcom will join rival Conexant Systems Inc. in Newport Beach, which was added to the S&P; Index in January. The addition of a company on an index recognizes its solid business and high market value, among other qualities.

Broadcom’s stock, which rose $3.50 to $147.50 a share during the regular Nasdaq trading session, surged an additional $16 a share to $163.50 in extended trading.

S&P; said the company will replace GTE Corp., which is being acquired by Bell Atlantic Corp., already a component of the index. S&P; said it will announce the date for the change later.

The merger of GTE Corp. and Bell Atlantic has been approved and should close by the end of June, the chief executives of both companies said earlier Monday.