CIBC selling U.S. credit card issuer

CIBC is selling its stake in credit card company Juniper Financial Corp. for $383 million to Barclays Bank PLC.

The sale is expected to close by the end of the year, and result in CIBC recording a $46 million after-tax gain.

CIBC bought a 51 per cent stake in Juniper in 2001. The bank later increased its stake in the company to 98 per cent.

Based in Wilmington, Delaware, Juniper has roughly 700,000 accounts and $1.4 billion in receivables. The company issues credit cards for several companies, including Midwest Airlines, Best Western and Caesars Entertainment.

The Juniper sale is the latest sale of U.S. assets by CIBC. In December 2003, CIBC World Markets announced the sale of its U.S. Oppenheimer private client and asset management division to New York brokerage house Fahnestock Viner Holdings. The $400 million deal gave CIBC the right to acquire more than a third of Fahnestock.

Shares of CIBC slipped 30 on Wednesday, closing at $64.50 on the TSX.