Visa Usa Inc

Credit card goliath Visa Inc. said Monday that it planned to raise as much as $18.8 billion in what would be the largest initial public offering in U.S. history. The timing surprised analysts because the credit crunch and a possible recession could slow consumer spending and eat into the company's profit.

Discover Financial Services, the fourth-biggest U.S. credit card company, settled an antitrust suit in which it sought $18 billion from larger rivals Visa Inc. and MasterCard Inc. for blocking banks from issuing its cards. The accord came as trial was to begin Tuesday in Manhattan federal court. Terms weren't disclosed, but UBS analyst Adam Frisch in New York wrote that "industry sources" said the case was settled for $2.

A service fee that Visa places on its largest debit-card issuers that essentially deterred them from moving their business to a competitor is unlawful, a judge has ruled. Credit card network operator and Visa rival MasterCard Inc. said U.S. District Judge Barbara S. Jones ruled against Visa's fee, which was imposed after a lawsuit was settled in 2003.

Gap Inc. Chief Financial Officer Byron Pollitt is leaving the slumping retailer Sept. 14 to take the same job at credit card issuer Visa Inc., the companies said. Pollitt, 56, will be replaced by one of his top deputies, Sabrina Simmons, who is being promoted from senior vice president of corporate finance to executive vice president and acting chief financial officer. Simmons, 44, joined Gap in 2001 as vice president and treasurer.

The Justice Department is investigating interchange fees that MasterCard Inc., Visa International Inc. and their member banks charge retailers to process transactions, the department's chief antitrust enforcer told Congress. Thomas O.

Visa, the world's largest credit card network, has agreed to settle a 3-year-old antitrust lawsuit with rival American Express Co. for about $2.1 billion, Visa said Wednesday. The settlement stems from a 2004 suit American Express filed against Visa, MasterCard and eight banks that claimed the card associations' "anticompetitive practices" prevented 20,000 U.S. banks from using its credit card products. The settlement must be approved by Visa's members.

Visa, the biggest U.S. credit card network, plans to raise $10 billion in an initial public offering. Visa said it would deposit a portion of the company's proceeds into an escrow account to pay settlements or judgments related to litigation. The offering is expected to be the biggest of the year. Visa is following in the footsteps of rival MasterCard, which has more than quadrupled in market value since it went public in May.

Credit card leader Visa Inc. posted an $861-million loss for fiscal 2007, weighed down by $2.65 billion in litigation costs, most of which came from settling an antitrust suit brought by rival American Express Co. Revenue in the year ended Sept. 30 rose 33% to $5.19 billion. The loss compares with profit of $453 million in 2006, Visa said.

Retailers that won a $3-billion antitrust settlement from Visa USA and MasterCard International Inc. are questioning a bid by the U.S. government to get a share of the settlement money. In a Feb. 1 letter to the judge overseeing the case, the lead attorney representing the retailers said there was a "serious question" about whether the Justice Department and the U.S. Postal Service, which had filed claims Jan. 27, should be given a piece of the landmark settlement.

Visa Inc. raised $17.9 billion late Tuesday to complete the largest initial public offering in U.S. history and help prop up the wobbly financial services industry. The world's largest processor of credit and debit cards sold 406 million shares at $44 apiece to easily eclipse the previous U.S. record IPO of $10.6 billion set by AT&T Wireless eight years ago. If investment bankers exercise an option on an additional 40.6 million shares, Visa's IPO would end up raising $19.7 billion before expenses.