Excite@Home to Issue Web Tracking Stock

Excite@Home Corp., which provides Internet access through cable TV lines, said it will issue a tracking stock for the Excite Web site business it acquired six months ago. The plan raises the possibility that Excite@Home, whose largest shareholder is AT&T; Corp., will distribute services from America Online Inc. and other Internet content providers that want fast Internet access through Excite@Home’s cable pipeline. Redwood City, Calif.-based Excite@Home, which delivers service to almost 1 million U.S. homes, plans to distribute the new stock in its third quarter. Excite@Home shares jumped $5.69 to close at $57 on Nasdaq, while AT&T; gained $5.50 to close at $52.06 on the NYSE. The issuance of a tracking stock for Excite@Home’s media properties effectively splits the company into two units: its media properties and its Internet access business. Excite@Home was formed last May when @Home Corp. bought Excite Inc. for $8.26 billion.