equity carve-out (eco) - The Center for Paper Business and Industry ...

TRACKING STOCK (TS)
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The financial reporting is separate for the TS from the parent but the
control remains in the hands of the parent company.
TS is typically distributed as a dividend to shareholders of the parent
company and can also take the form of an Initial Public Offering
(IPO).
Even during its hay day, only two Pulp and Paper Companies had
taken advantage of this instrument but that did not result in the
enhancement of their corporate value.
By 2006, the TS as a corporate restructuring tool had disappeared
altogether and none was issued between 2001 and 2006.