Report: Federated Looking to Sell Credit Card Port
Cincinnati, OH, November 15-- Federated Department Stores Inc. is looking to sell its credit card portfolio for about $3 billion, according to a New York Post report.
The company has hired Credit Suisse First Boston to handle the proposed deal to sell the unit, which includes proprietary credit cards for Bloomingdale's and Burdines's and co-branded Visa card operations, the Post said, citing several sources familiar with the matter.
CSFB is putting together an offering memorandum to distribute to potential buyers, with Federated planning to use any proceeds to buy back stock or make acquisitions, sources told the Post.
The newspaper said likely buyers include major banks or credit card issuers, such as Citigroup, J.P. Morgan, GE, and Household Retail Services, which is owned by HSBC Holdings PLC.
A sale is not expected to be completed before January, the paper said.
