Sunday, October 15, 2006

"Visa's Initial Offering Expected to Fetch $5-Billion" (The Globe and Mail)

Abstract: "Visa said it plans to sell 51 per cent of the company and use the proceeds to invest in new technology, enhanced security, expansion into new markets, and to handle legal claims stemming from a spate of antitrust lawsuits in the United States and elsewhere. ... Visa officials also said an IPO would help the company deal with a spate of lawsuits that analysts have estimated could eventually cost it and MasterCard billions of dollars. In one case, U.S. retailers have launched a class-action lawsuit, alleging that credit card issuers have conspired to fix prices. They are seeking tens of billions of dollars in damages. Visa and MasterCard are also facing a suit by rivals American Express and Discover."

[Source: The Globe and Mail]