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HSBC Completes Acquisition of Metris Companies

by Peter Andrew

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HSBC

Completes Acquisition of Metris Companies

HSBC Finance Corporation announced Thursday that its acquisition

of credit card issuer Metris Companies has been completed.

HSBC paid Metris shareholders approximately $1.6 billion in

cash. Each holder of Metris common stock received $15 a share.

Metris

got into serious financial problems in 2001 when its strategy

of issuing cards to "sub-prime" consumers backfired

amidst the severe economic slowdown. More recently, Metris had

begun a turnaround predicated on lending to "near prime"

customers -- those with credit still below average, but not

the bottom of the barerel.

Metris

was formed in 1994 and became a public company in 1996. The

company issues credit cards through Direct Merchants Credit

Card Bank, N.A., a wholly-owned subsidiary headquartered in

Phoenix, Arizona. HSBC has not announced whether the same issuing

process will continue, or if credit cards will be re-branded.

 

Published 12/02/05 (Modified 11/25/12)


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