Target in talks over credit card business

MINNEAPOLIS Target today announced that it is currently in negotiations with an investment partner to sell an undivided interest in approximately half of Target’s credit card receivables for about $4 billion. The company first began reviewing ownership alternatives for its credit card business in September 2007.

In a press release announcing the transaction, Target did not disclose the name of the potential investor and said that it can not guarantee the deal will occur. If completed, Target said it expects the deal to close during the second quarter of 2008.

"If completed, it would generate substantial liquidity for Target from a single source unrelated to the debt capital markets while continuing to utilize the skills and experience of Target’s internal team to provide valuable financial products and services to its guests. In addition, if completed, the proposed transaction would forge a new, long-term relationship with an investment partner whose broad experience is expected to result in strategic and financial benefits to Target over time," Target reported.