Speculation that National Austrlaia Bank To sell Credit Card division

There is speculation that the National Australia Bank (NAB) may be about to divest its credit card division. The business is worth approx $4 billion. Interest in acquiring it has been voiced by Citibank Australia, which has the Diners Club credit card brand in Australia. Combining its market share of 8%, as the number five, with that of NAB, the number four, would result in a combined 24%, larger than current leader Commonwealth Bank of Australia's 23% share.

This would add a significan't injection of cash into National Austrlaia Bank. What it would do with this cash is also up for speculation but it may return some of it to shareholders. This could cause a short term spike in the share.

But for investing this is going to take away a major part of the National. At the moment the national is one of the better priced banks as far as fundamentals but if it was to sell this asset it would significantly hurt its longer term prospects for growth.

I won't specualte further till more information is available ... as a lot would depend on the price.

Good Luck investing