Amex drops reins at First Data
Saturday 06 March 1993
The offering of shares, which will reduce Amex's stake in First Data to about 23 from 54 per cent, is expected to raise about dollars 1.2bn. American Express brought the first 46 per cent of First Data to the market last year in an initial public offering that raised dollars 1.1bn.
The sale is expected to close some time in the second quarter, at roughly the same time as Amex's Shearson Lehman subsidiary finalises the sale of its Boston Company money-management subsidiary.
Mellon Bank, of Pittsburgh, will pay a total of dollars 1.5bn in cash and securities for the Boston Company unit, although the after-tax gain to the securities firm will be only dollars 150m.
Last year, after a series of large losses, the financial-services conglomerate reversed a decade-long acquisition drive and began looking for buyers for operations outside its core travel-and-charge card business.
The pace of the restructuring, however, was too slow for Amex shareholders, who forced James Robinson, chief executive, out of office last month.
Mr Robinson succeeded in having his chosen successor, Harvey Golub, named to run the company, but failed in his own bid to stay on as chairman of Shearson.
Amex refused to discuss any further disposals yesterday, although many analysts believe the company will eventually sell or spin off Shearson, America's second-largest retail brokerage.
Amex shares responded positively to news of the disposal, adding 37.5 cents to dollars 25.50 by midday yesterday.
- 1 Howard Jacobson: Let's see the 'criticism' of Israel for what it really is
- 2 Instagram of US airport security chiefs: Lipstick knives and IED training kits among items seized
- 3 Brazil vs Germany World Cup 2014: In defence of Mesut Ozil - the Arsenal midfielder works magic in the shadows
- 4 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
- 5 Tony Abbott embarrasses Australia by praising Japanese WWII military, ‘getting on the sake’ and posing for ‘crotch-shot’ photo opportunity
Sustained immigration has not harmed Britons' employment, say government advisers
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
There’s a nasty smell in the political air – and it’s coming from the Tories
Vanessa Feltz criticises 'vile' reaction to Rolf Harris allegations
iJobs Money & Business
£60000 - £75000 per annum: Harrington Starr: Business Analyst Consultant (Fina...
£60000 per annum: Harrington Starr: A leading provider in investment managemen...
£600 - £700 per day: Harrington Starr: AVS, JVS Openlink Endur Developer JVS, ...
£30000 per annum: Harrington Starr: A global leader in trading platforms and e...