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Target Corp.'s deal with JPMorgan Chase & Co. was not a compromise with activist shareholder Bill Ackman, and it is not a sign that the retailer soon will quit the credit card business, Douglas A. Scovanner, Target executive vice president and chief financial officer, states in a letter to American Banker (also filed as a proxy statement with the U.S. Securities and Exchange Commission). "Our credit card transaction last year did not result from any such compromise," he says. "On the contrary and in a very difficult market, Target was able to achieve all of the strategic objectives we had laid out some eight months earlier. By the way, it is a matter of public record that in 2008 Bill Ackman expressed his strong support of it directly to me. Only now has he reversed his opinion." Scovanner went on to say he believes Target will not get out of the card business, noting that while it will "continue to aspire to reduce our current minority investment in this pool of assets, Target's talented team will continue to play its key role in managing this portfolio. Working together with our strong partners at Chase Card Services, we believe this will ensure that our portfolio continues to enjoy its consistent and industry-leading growth and returns for years to come."

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