Capital One, NetSpend not to go ahead with acquisition plan news
28 November 2007
Credit card and banking company Capital One Financial Corporation has said it no longer plans to buy NetSpend Holdings, a prepaid debit card marketer. Instead, Capital One said it will acquire a minority stake in NetSpend, and reserve the right to buy additional shares in the company. The two companies plan to distribute prepaid cards jointly. Capital One had said earlier in August that it had agreed to buy NetSpend for $700 million in cash. A Capital One representative said discussions with NetSpend determined that both companies would be "best served by restructuring and expanding (the) existing relationship".