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 Hilary Mantel 'should be investigated by police' over Margaret Thatcher assassination story, says Lord Bell
- 2 Rihanna 'nude pictures' claims emerge on 4Chan as hacking scandal continues
- 3 Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
- 4 'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
- 5 Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Rihanna 'nude pictures' claims emerge on 4Chan as hacking scandal continues
Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
Jennifer Lawrence: Leaked 4Chan sex video branded 'fake' by users
Jennifer Lawrence 'naked sex video' will be leaked next, threatens 4Chan celebrity photo hacker
Scotland could still declare independence – even without referendum, says Alex Salmond
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Hilary Mantel 'should be investigated by police' over Margaret Thatcher assassination story, says Lord Bell
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Plebgate MP Andrew Mitchell called officer a 'little s**t', claim court documents 'exposing ex-Chief Whip's 'record of abusing police'
Archbishop of Canterbury admits doubts about existence of God
iJobs Money & Business
£65000 Per Annum Benefits + bonus: Clearwater People Solutions Ltd: If you are...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree are a global FTSE 250 ...
£20000 - £25000 per annum + OTE £40000: SThree: As a Recruitment Consultant, y...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...