Target to Decide on Credit Card Receivables by Spring
By Staff -- Home Textiles Today, 1/7/2008
Minneapolis — Target Corp. said it now plans to announce a decision on "alternative ownership structures" for its credit card receivables portfolio in the first calendar quarter of 2008.
The 1,591-store upscale discounter said its review of alternatives is taking longer than expected, "in part as a result of current market conditions."
Major shareholder Pershing Square Capital Management last July reported that it had amassed 9.6% of outstanding common shares of Target stock, and its managing member William Ackman offered a range of steps for the retailer to raise its share price — including the possibility of spinning off its credit card receivables. Target on Sept. 12 said it had launched a review of that idea.
Target said it projects increased earnings before taxes from the portfolio through 2008.
