Federated Department Stores may be getting rid of its plastic, The NY Post has learned.
Federated, the Cincinnati, Ohio-based owner of Macy’s and Bloomingdale’s, has decided to explore a possible sale of its credit-card portfolio, according to several sources familiar with the matter.
The company’s board, which has been considering the move for several months, has retained Credit Suisse First Boston to handle the auction. The investment bank is in the process of putting together an offering memorandum to distribute to potential buyers. Federated is expected to fetch about $3 billion for the unit, sources said. The business includes both Bloomingdales’s and Burdines’s proprietary credit cards and its co-branded Visa card operations.
Federated may use the proceeds from a potential sale to repurchase stock, make strategic acquisitions or for other general corporate purposes, sources said.
A sale likely would put the unit into the hands of a major bank or credit card issuer. Potential buyers may include Citigroup, J.P. Morgan Chase & Co., General Electric Co.’s G.E. Consumer Finance division and Household Retail Services, which is owned by HSBC Holdings PLC.
For this complete story, please visit Federated May Sell Credit-card Portfolio in Potential $3 billion Deal.
