True North to trim Modem Media holdings

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True North Communications said it will offer to sell a portion of its stake in Modem Media as part of a larger public offering of Modem Media stock. It said it was reviewing a number of possible uses for the proceeds of the sale, including repurchase of TN stock and further investments in its portfolio of digital brands.

TN said it currently owns 11.1 million shares in Modem Media, representing an approximate 46% ownership stake. It said it would offer 2.5 million of those shares for sale, reducing its stake to 34%. TN's 2.5 million shares would be part of an offering that would involve a total of 4.5 million Modem Media shares.

Modem Media closed at $42.50 per share in Nasdaq trading March 16. At that price, the 4.5 million shares would be worth $191.3 million. TN's 2.5 million share sale would be worth $106.3 million.

Copyright March 2000, Crain Communications Inc.

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