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MINNEAPOLIS (AP) - Target Corp., which has been balancing pressure to sell a credit card portfolio that it once pledged to keep, said Wednesday that it may have found a solution.
Target said it was in talks to sell half of its credit card receivables for about $4 billion. Target did not disclose the potential buyer. Target said the proposed transaction is subject to conditions including "acceptable economics at the time of closing."
A deteriorating economy has made some people worry that Target's credit card portfolio could suffer, although Target has said that it maintains adequate reserves for losses. If it sells half the portfolio, it will lock in a gain now in exchange for giving up some future credit card profits.
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