Chase buys stake in MasterCard

Chase buys stake in MasterCard
Tags: Bank / Credit Union, Debit / Credit, Other, Public Companies
July 19, 2006

NEW YORK - JPMorgan Chase & Co., the largest shareholder of MasterCard International, reported that it has sold more than half of its Class B shares back to the card company. The sale is part of the year's biggest initial public offering, which MasterCard made in May.

The banking giant last week reported that it netted $64 million on the shares sale.

As a result, JPMorgan now holds 5.7 million nonvoting Class B shares in MasterCard - a 4.25 percent stake. The shares can't be sold for four years, according to a regulatory filing.

JPMorgan had owned a 10.5 percent stake in MasterCard. Other large bank-owners include Citibank, Bank of America and HSBC. Those banks also are expected to sell some of their shares.