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To: Madharry who wrote (7681)7/7/1999 1:35:00 AM
From: peter michaelson  Read Replies (2) | Respond to of 78523
 
I am beginning to try to understand tracking stocks, after jeffrey generously brought GZSP to our attention.

My understanding is that holders of tracking stocks have a claim on the assets of the parent company, just the same as common shareholders of the parent.

But how could this hold up in court? If the majority of GZSP shareholders requested the assets to be spun-off, wouldn't they win the day? Of course, if the parent continues to hold the majority of the tracking stock shares, this is a moot point.

So far I have not been able to get a comprehensive overview of the tracking stocks. Time to check out old EDS and Hughes filings, I guess.

peter