DENVER-U S West Inc. said its shareholders have voted to introduce two new classes of the company’s common stock.
The move is one U S West hopes will attract a new kind of investor and at the same time highlight the company’s emphasis on maintaining cohesiveness for the convergence of voice, video and data services.
“This approach gives our shareowners the best of two worlds,” said Richard McCormick, U S West chairman and chief executive officer.
“On one hand, they now have the flexibility to choose from two classes of stock, or some combination. On the other hand, they retain many of the financial and strategic advantages of investing in a single corporation,” said McCormick
One class of stock will track the performance of U S West’s 14-state telecommunications business, while the other will target the performance of the company’s wireless, multimedia, directory and international businesses.
During its stock distribution held earlier this month, U S West redesignated current shares of its common stock to represent U S West Communications Group, the 14-state telecommunications business. The company also issued one share representing U S West Media Group for each share of company stock previously held.
The two new stocks will trade independently on the New York Stock Exchange.
