Markets

U.S. open in 8 hrs, 16 mins

DJIA

10,433.71

-17.24

0.16%

NASDAQ

2,169.18

-6.83

0.31%

S&P 500

1,105.65

-0.59

0.05%

10yr Note

100.594

0.4062

0.41%

FTSE 100

5,323.96

-31.54

0.59%

Nikkei 225

9,435.94

34.36

0.37%

Hang Seng

22,381.91

-41.23

0.18%

Euro (in USD)

1.496

0.0005

0.03%

Yen (per USD)

88.49

-0.54

0.61%

Gold

1,165.50

0.00

0.00%

Oil

76.26

0.24

0.32%

BUSINESS NEWS

INVESTING

Financial Glossary

PERSONAL FINANCE AT WALLETPOP

SMALL BUSINESS

Credit Card Giant Visa Files for IPO

Posted: 2007-11-12 06:29:05

NEW YORK (Nov. 12) - Visa Inc, the world's largest credit card network, filed with regulators on Friday to raise up to $10 billion in an initial public offering, in one of the largest and most eagerly awaited U.S. stock offerings.

Visa announced the offering two days after agreeing to pay $2.1 billion to settle a three-year-old antitrust lawsuit with rival American Express Co.

The card network did not reveal in its registration statement filed with the U.S. Securities and Exchange Commission when it plans to go public, how many shares it plans to offer, or the expected share price.

San Francisco-based Visa outlined plans in October 2006 to float a majority of the network, which is now owned by its 13,400 member banks, and at the time said it hoped to go public within 12 to 18 months.

On Wednesday, it agreed to settle a 2004 lawsuit that American Express filed against Visa, the smaller MasterCard Inc and eight banks charging them with anti-competitive practices.

The new publicly traded entity, Visa Inc, will combine Visa's U.S., international and Canadian operations. Another affiliate. Visa Europe, will remain a membership organization and take a minority stake in Visa Inc.

Visa has said it plans to use IPO proceeds to fund expansion and an escrow account to help cover legal bills. The network and MasterCard face a variety of antitrust lawsuits from rivals and retailers, some of which accuse them of price fixing.

Visa's roots date to 1958 when a Bank of America Corp predecessor created the blue, white and gold BankAmericard, helping pave the way for the modern credit card business. That card has evolved into Visa.

MasterCard went public in May 2006 in a $2.4 billion IPO and its shares have since risen roughly five-fold.

Morgan Stanley spun off its Discover Financial Services, but those shares have fallen by about one-third.

Visa said Banc of America Securities, Citi, Goldman Sachs & Co, HSBC Securities USA Inc, JPMorgan, Merrill Lynch & Co, UBS Investment Bank and Wachovia Securities are joint book-runners for the IPO.

Additional reporting by Karey Wutkowski

2007-11-09 17:58:19

Must Read?

0 %

0 VOTES

Recent Comments

Post Your Own

1 - 10 of 21

21 comments

joeinakron 07:09:01 AM Nov 12 2007

Report This!

Dont Buy it is a scam

joeinakron 07:08:22 AM Nov 12 2007

Report This!

Dont Buy and be a sucker to the wall street barrons!

mioswalt 05:14:50 AM Nov 12 2007

Report This!

i was asked "why in the hell would you want to buy goo" i bought

mioswalt 05:14:46 AM Nov 12 2007

Report This!

i was asked "why in the hell would you want to buy goo" i bought

mioswalt 05:14:27 AM Nov 12 2007

Report This!

i was asked "why in the hell would you want to buy goo" i bought

esqlevine 08:23:41 PM Nov 11 2007

Report This!

Visa takes no credit risk. They merely process transactions for a fee. The banks and companies that offer Visa cards take the credit risk. Look at Mastercard (symbol MA) that recently went public. Please do your due diligence.

jjjaaazzzyyy 12:13:00 PM Nov 11 2007

Report This!

If secured debt is failing why would anyone buy into unsecured debt? Isn't that buying into defaults?

ept004 11:47:09 PM Nov 10 2007

Report This!

Whne is the IPO suppose to go public

agean2007 05:06:46 PM Nov 10 2007

Report This!

I am wondering..........If These shares go for $50 per share and I buy lets say a combined $25,000 worth on my 3 VISA cards,and many other people do similarly. And these shares over let say a year double,so...I pay off the card, and the interest. But lets say their stock tanks a bit, or I Universal default on another bill, then I don't pay Visa????

IPO? Should stand for Idiot Public Official, if they approve this.

agean2007 05:06:04 PM Nov 10 2007

Report This!

1 - 10 of 21

21 comments