Participants in U S WEST Inc.'s $2.7 billion 401(k) plan eventually might be able to choose between two stocks within the company stock option. Usually, there's only one.
U S WEST, Englewood, Colo., proposes creating a separate class of stock - U S West Media Group - representing its domestic and international cellular, cable television, publishing and software businesses. Shareholders will vote on the plan this fall.
Initially, plan participants will get one share of the media group for every share of U S WEST. Later, they probably will be able to specify which stock they want to hold in the 401(k) plan - the media group or that of the company's regional telephone business, U S WEST Communications Group, said Connie Adragna, manager, savings plan administration.
Just more than half the plan's assets are in company stock; the company also matches employee contributions - up to 6% of pay - in company stock.