Target Suspends Effort To Sell Card Portfolio
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MINNEAPOLIS (AP) – Target Corp. says it is temporarily suspending its efforts to sell the portfolio that handles the balances credit cardholders owe the company, but plans to resume the talks later this year.
The Minneapolis company also said Wednesday that it will pay about $2.8 billion to Chase Card Services to retire receivables financing from 2008. That payment, along with a premium, is expected to reduce its fourth-quarter earnings by about 8 cents per share.
Target still wants to sell its credit card receivables portfolio, but says it wasn’t in its best interests to complete a deal now.
The company hopes by pausing talks and repaying the Chase financing that it will be able to get a deal and sell the portfolio in either late 2012 or early 2013.
Its shares fell 1.7 percent to $49.05 in premarket trading Wednesday.
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