A New York payment card company wants to spin off its financial advisory unit.[@@]
The card company, American Express Company, says it hopes to separate from American Express Financial Advisors, Minneapolis, by Sept. 30.
American Express is splitting the companies so it can focus on its charge card, credit card and payment processing network operations, executives say.
American Express plans carry out the split by putting 100% of the common stock of American Express Financial Corp., the subsidiary that controls AEFA, into the hands of American Express shareholders.
American Express Chairman Kenneth Chenault says the deal should be good for AEFA as well as for American Express.
"As an independent company, AEFA would not have to compete for capital or management resources with other American Express businesses and therefore would be able to react more quickly to market opportunities for new products, partnerships and expansion," Chenault says in a statement about the proposed spin-off.
