Target, JP Morgan talk on credit card deal: report

The JPMorgan and Chase headquarters is seen in New York January 30, 2008. Target Corp is in discussions with JPMorgan Chase & Co about taking a half-interest in the retailer's credit-card operations, the Wall Street Journal reported on Friday, citing people familiar with the matter.

NEW YORK (Reuters) - Target Corp (TGT.N) is in discussions with JPMorgan Chase & Co (JPM.N) about taking a half-interest in the retailer's credit-card operations, the Wall Street Journal reported on Friday, citing people familiar with the matter.

Target said on Wednesday it is in talks with an investment partner to sell an undivided interest in about half of its credit-card receivables for about $4 billion.

If an agreement is completed, a closing during the second quarter looks possible, the retailer said in a statement, adding that the deal was subject to definitive accords and various approvals.

Target said a completed deal with the new partner would "generate substantial liquidity" to the company from a single source unrelated to the debt capital markets while continuing to use the skills of Target's internal staff to service customers.

Target and JP Morgan were not immediately available to comment on the report.

(Reporting by Yinka Adegoke; Editing by Erica Billingham)