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Technology Stocks : TCOMA -- Ignore unavailable to you. Want to Upgrade?

To: Gloria G who wrote (606)	6/28/1998 11:41:00 PM
From: Anthony Wong	Respond to of 663

AT&T's New Tracking Stock May Pose Risks, Times Column Says Bloomberg News June 28, 1998, 11:27 a.m. PT AT&T's New Tracking Stock May Pose Risks, Times Column Says New York, June 28 (Bloomberg) -- AT&T Corp.'s new stock tied to its consumer-services division, to be issued in connection with its planned $44 billion purchase of Tele-Communications Inc., may pose more risks to investors than holding shares of AT&T outright, which reflect the performance of the telecommunications company as a whole, according to the New York Times' ''Market Watch'' column. While companies often benefit by issuing these so-called tracking stocks when a piece of their business is strong or perceived as growing, holders of these shares get neither voting rights nor ownership in the assets whose performance the stocks track. Tracking stocks issued by Circuit City Stores-Circuit City Group, Genzyme Corp. and Georgia- Pacific Group have all fallen from where they were issued, though TCI's two tracking stocks -- Liberty Media Group and Tele- Communications TCI Ventures Group -- have both climbed. AT&T, the largest U.S. long-distance company, said Wednesday it agreed to buy TCI in exchange for stock and assumed debt, in a bid to use the wires of the nation's No. 2 cable company to provide local telephone and Internet services. (NYT 6/28 3-1, www.nytimes.com) --Beth Williams in the New York newsroom (212) 318-2307/jcn