No Federated for HSBC Retail Services
By RIVA D. ATLAS , Published: June 3, 2005
Citigroup said yesterday that it had agreed to acquire the credit card portfolio of Federated Department Stores, continuing a string of acquisitions that Citigroup has made to bolster a business in which it has been struggling to retain market share.
The bank will gain 17 million accounts as a result of the deal, a boon for Citigroup at a time when the credit card business over all has grown more competitive, with fewer consumers opening accounts. Citigroup will acquire $4.4 billion in outstanding Federated card balances, and another $2.2 billion in balances from May Department Stores after the two retailers complete their merger later this year. Citigroup will pay a premium of about 11.5 percent, or $760 million, above the value of the outstanding card balances.
“Citi has had regulatory issues in the past but customers stand a better chance with them than with HSBC Retail Services right now” said Household - HSBC Watch.
Thinking of making a debt settlement offer? See common settlement scams and rip-offs first
Call somebody about this, anywhere in the world, for FREE
