March 28 Shares of CBS Outdoor Americas Inc
rose 9 percent in their market debut, valuing the
outdoor advertising company carved out of broadcaster CBS Corp
at about $3.65 billion.
CBS Outdoor raised about $560 million after its initial
public offering was priced at $28 per share, the top end of the
expected price range.
The company's shares opened at $30.10 and touched a high of
$30.42 in early trading on the New York Stock Exchange on
CBS Corp's stake in CBS Outdoor fell to 83 percent after the
offering. Its holding will drop to about 81 percent if
underwriters fully exercise their option to buy additional
CBS Corp plans to divest its shares through a tax-free
splitoff later this year, after which CBS Outdoor will trade as
a real estate investment trust (REIT).
That will allow CBS Outdoor to avoid paying corporate-level
income taxes if it distributes at least 90 percent of its
taxable income to shareholders in the form of dividends.
Goldman Sachs, BofA Merrill Lynch, J.P. Morgan and Morgan
Stanley are lead underwriters of the offering.
(Reporting by Tanya Agrawal in Bangalore; Editing by Savio