April 16 CBS Corp said on Wednesday that
the Internal Revenue Service gave a favorable ruling to the
company's plan to convert its outdoor advertising subsidiary,
CBS Outdoor Americas Inc, into a real-estate investment
Media conglomerate CBS holds an 81 percent stake in CBS
Outdoor, which went public in late March.
CBS Corp has said it plans to divest the stake later this
As an REIT, a company can avoid paying corporate-level
income taxes if it distributes at least 90 percent of its
taxable income to shareholders in the form of dividends.
CBS Outdoor, whose customers include Apple Inc,
McDonald's Corp and Sony Corp, has about
329,100 displays in the United States and about 26,100 displays
across Canada and Latin America.
Shares of CBS Outdoor were up 6.7 percent at $30.97 in
afternoon trading, while CBS Corp's shares were up 2 percent.
Shares of Lamar Advertising Co, which is also
eyeing REIT status, rose 5 percent.
(Reporting By Lehar Maan in Bangalore; Editing by Simon