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Sony to Issue Tracking Stock for Internet Unit

November 21, 2000|Associated Press

Japanese consumer electronics giant Sony plans to raise funds by issuing a tracking stock for an Internet-related subsidiary.

Sony Communication Network, an Internet service provider concentrating on network-based business, is a core part of Sony's drive to provide entertainment on the Web, the company said Monday.

The electronics maker will hold a shareholder meeting Jan. 25, before the issuance of tracking shares.

Unlike conventional shares, the value of tracking shares would be linked only to the performance of the subsidiary, as opposed to the company as a whole, Sony said.

Shares of Sony's American depositary receipts fell $2.31 to $73.31 in NYSE trading.

Sony would be the first company to issue tracking stocks in Japan, the company said. A number of U.S. companies have issued tracking stocks, such as AT&T (T), for its AT&T Wireless unit.

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