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Chase aims for card flotation

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CHASE Manhattan Bank is to spin off its credit card division to raise more than $500 million, according to industry sources.

It would be the first credit card business flotation in Hongkong.

Before the public offering, the bank may place 10 per cent of the new shares to a mainland-related company in an attempt to cultivate the China market.

It is believed the bank has held discussions with the Hongkong arm of China International Trust and Investment Corp (CITIC) over a placement.

Twenty-five per cent of the new shares will be offered to the public, while the bank and the mainland-related company together will hold a majority 75 per cent stake in the new company.

Chase's application to list on the stock exchange has yet to be considered by the listing committee.

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