Visa plans $10 billion float

15 November 2007

Mumbai: Visa Inc, the world''s largest credit card network, proposes to raise up to $10 billion in an initial public offer, in one of the largest initial stock sales in the US.

Visa has already filed its registration statement with the US market regulator, the Securities and Exchange Commission, but it did not reveal when it plans to go public, how many shares it plans to offer, or the expected share price.

The offer comes two days after San Francisco-based Visa agreed to pay $2.1 billion to settle a three-year-old antitrust lawsuit with rival American Express Co. American Express had in 2004 filed a lawsuit against Visa, the smaller MasterCard Inc and eight banks charging them with anti-competitive practices. (See: American Express agrees to settle case against Visa, others for $2.1 billion) In October 2006, Visa outlined plans for a float of its card network, which is now owned by its 13,400 member banks, and at the time said it hoped to go public within 12 to 18 months.

The new publicly traded Visa Inc will combine Visa''s US, international and Canadian operations. Visa Europe, will remain a member organisation and take a minority stake in Visa Inc.

Visa has said it plans to use IPO proceeds to fund expansion and an escrow account to help cover legal bills. The network and MasterCard face a variety of antitrust lawsuits from rivals and retailers, some of which accuse them of price fixing.

Visa''s roots date to 1958 when a Bank of America Corp predecessor created the blue, white and gold BankAmericard, helping pave the way for the modern credit card business. That card has evolved into Visa.