PURCHASE, NY, June 25 /PRNewswire-FirstCall/ -- MasterCard Incorporated
today announced it has reached an agreement to settle its outstanding
litigation with American Express.
(Logo: http://www.newscom.com/cgi-bin/prnh/20061031/MCLOGO )
The form of the agreement calls for 12 quarterly payments by MasterCard,
beginning in the third quarter of 2008, of $150 million, contingent upon the
performance of American Express's U.S. Global Network Services business. On a
tax-affected net present value basis, the settlement payments are estimated to
be, in the aggregate, approximately $1 billion. MasterCard will take a charge
for the settlement in the current quarter. The maximum nominal amount of the
settlement is $1.8 billion.
'We are pleased to have reached a settlement with terms that will enable
us to keep our strong balance sheet intact, so we can continue to build on our
exceptional business results and vigorously pursue our strategy,' said
MasterCard President and Chief Executive Officer Robert W. Selander.
'Eliminating the uncertainty, time commitment, and expense of a prolonged
court case is in the best interest of our shareholders, our customers and our
management team,' he stated.
About MasterCard Incorporated
MasterCard Incorporated advances global commerce by providing a critical
economic link among financial institutions, businesses, cardholders and
merchant worldwide. As a franchisor, processor and advisor, MasterCard
develops and markets payment solutions, processes over 18 billion transactions
each year, and provides industry-leading analysis and consulting services to
financial institution customers and merchants. Through its family of brands,
including MasterCard(R), Maestro(R) and Cirrus(R), MasterCard serves consumers
and businesses in more than 210 countries and territories. For more
information go to www.mastercard.com.
Forward-Looking Statements
Statements in this press release which are not historical facts, including
statements about MasterCard's plans, strategies, beliefs and expectations, are
forward-looking and subject to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements speak
only as of the date they are made. Accordingly, except for the company's
ongoing obligations under the United States federal securities laws, the
company does not intend to update or otherwise revise the forward-looking
information to reflect actual results of operations, changes in general
economic or industry conditions, changes in financial condition, changes in
estimates, expectations or assumptions or other circumstances arising and/or
existing since the preparation of this press release or to reflect the
occurrence of any unanticipated events. Such forward-looking statements
include, without limitation:
-- the final amount of the Company's estimated second quarter 2008 after-
tax charge of approximately $1 billion; and
-- the performance of American Express' U.S. Global Network Services
business and, accordingly, the amount of each quarterly settlement payment by
MasterCard.
Actual results may differ materially from such forward-looking statements
for a number of reasons, including those set forth in the company's filings
with the Securities and Exchange Commission (SEC), including the company's
Annual Report on Form 10-K for the year ended December 31, 2007, the Company's
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that have been
filed with the SEC during 2008. Factors other than those listed above could
also cause the company's results to differ materially from expected results.
SOURCE MasterCard Incorporated
