Sony Plans Web Co. Tracking Stock

TOKYO (AP) â€” Japanese consumer electronics giant Sony Corp. plans to raise funds by issuing a tracking stock for an Internet-related subsidiary. <br><br>Sony Communication Network Corp., an Internet

Monday, November 20th 2000, 12:00 am

By: News On 6

TOKYO (AP) â€” Japanese consumer electronics giant Sony Corp. plans to raise funds by issuing a tracking stock for an Internet-related subsidiary.

Sony Communication Network Corp., 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 an extraordinary meeting of shareholders on Jan. 25, before the issuance of tracking shares for the subsidiary.

Unlike conventional shares, the value of tracking shares would only be linked to the performance the subsidiary, as opposed to the company as a whole, Sony said. It has not yet decided the total value of tracking stock to be issued.

Sony will be the first company to issue tracking stocks in Japan, the company said. A number of U.S. companies have issued tracking stocks, including AT&T Corp., for its subsidiary AT&T Wireless Group, and General Motors Corp., for its Hughes Electronics subsidiary.