U.S. Card Issuers Eye Aftermath of Summer of Mergers

Published on:
12 September 2006 at 10:20 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00001224-us-card-issuers-eye-aftermath-of-summer-o/

By James B. Kelleher, Reuters

It’s been a summer of hot deal-making in the U.S. credit-card industry. But with autumn still weeks away, analysts say the consolidation trend may already be cooling.

In recent months, three stand-alone U.S. issuers — Providian Financial Corp., MBNA Corp. and Metris Cos. Inc. — have been snapped up by lenders hungry for the fee income and cross-selling opportunities they offer.

Naturally, the flurry of deals has sparked speculation about who might be next, but many analysts say the companies mentioned most frequently — American Express Co., Capital One Financial Corp. and Advanta Corp. — are unlikely targets for the near term.

The market seems to think otherwise.

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