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Monday, February 25, 2008

Banks to reap billions from Visa sale

The nation’s biggest banks will collect a windfall from Visa Inc.’s initial public offering later this year. (See story here). JPMorgan Chase & Co. expects to sell stock in Visa worth at least $1.2 billion during and soon after the sale, San Francisco-based Visa said in a public filing with the Securities and Exchange Commission today. Bank of America Corp. plans to sell another $660 million.
BofA and JPMorgan Chase are the top two credit card issuers, according to the Nilson Report, of Oxnard, Calif. Both banks’ card arms are based in Wilmington, Del. , where BofA absorbed the former MBNA Corp. and Chase Card Services includes the former First USA Bank.
The Visa sale could raise $19 billion, making it the biggest intial public offering in the history of the markets, accrording to Bloomberg News. 
Visa hopes to imitate rival MasterCard, whose stock rose sharply after the banks that ran both networks as cooperatives reorganized MasterCard as a for-profit company in 2006. 
National City Corp., Citigroup, Bancorp and Wells Fargo & Co. also expect multimillion-dollar payouts, Visa said. 
Even after they dump part of their load overboard, the banks will remain major shareholders, according to Visa.
Posted by Joseph N. DiStefano @ 4:05 PM  Permalink | Post a comment
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About Joseph N. DiStefano
Joseph N. DiStefano writes this blog to feed his PhillyDeals column in the Philadelphia Inquirer. Joe has been a member of Bloomberg LP’s New York Finance Team, wrote the book “Comcasted,” taught writing at St. Joseph’s University, and studied economics and history at Penn. Reach Joe at 215-854-5194 and JoeD@phillynews.com
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