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Tracking stock for Rainbow
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February 16, 2001: 4:15 p.m. ET
Cablevision approves tracking stock for Rainbow; won't include 20% MGM stake
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NEW YORK (CNNfn) - Cablevision Systems Corp. approved Friday the creation of a tracking stock for certain assets of Rainbow Media Holdings Inc.
Shareholders of the Bethpage, N.Y.-based Cablevision (CVC: Research, Estimates) approved the stock, to be called Rainbow Media Group. The tracking stock will reflect the separate economic performance of certain businesses of Rainbow Media Holdings. Cablevision, a cable operator and sports team owner, owns 74 percent of Rainbow Media Holdings; NBC, a unit of General Electric Co. (GE: Research, Estimates), holds 26 percent.
The tracking sock will include American Movie Classics, Bravo, The Independent Film Channel, MuchMusic USA, Rainbow Sports and WE: Women's Entertainment. Cablevision shareholders will receive one share of
Rainbow Media Group for every two Cablevision shares held.
 Earlier this month, Metro-Goldwyn-Mayer Inc. agreed to purchase a 20 percent stake in four Rainbow Media cable networks, including American Movie Classics, Bravo, The Independent Film Channel, and We: Women's Entertainment.
MGM's 20 percent stake in the four networks will not be included in the tracking stock, Cablevision said in a statement. The MGM (MGM: Research, Estimates) transaction is expected to close in the next two months.
Shares for Cablevision fell $1.80 to close at $77.08 Friday, while MGM dropped by 39 cents to $19.01. 
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