MasterCard sets IPO terms

MasterCard Inc may offer up to 61.5 million shares for between $40 and $43 a share in an initial public offering, according to a regulatory filing on Wednesday. Assuming the offering prices at $41.50, the midpoint of the expected range, the company would have an initial market capitalisation of about $5.6 billion, including all Class A and Class B shares. The offering, to be lead by Goldman Sachs, is expected to raise $2.43 billion, the filing said. The company intends to use $650 million to redeem Class B shares.MasterCard earned $126.7 million on revenue of $738.5 million in the first quarter of 2005 after earning $93.3 million on revenue of $658.2 million in the same period last year, the filing said.The company’s IPO was delayed in February after its CEO, Robert Selander, was diagnosed with cancer. The offering document makes no mention of his current medical condition.

P&G profit jumps, sales below target

CHICAGO: Procter & Gamble Co on Wednesday said quarterly profit jumped 37 per cent, as the addition of Gillette products to its lineup, along with price increases and cost cuts, offset higher commodity costs and inventory cutbacks by retailers. But sales in the recent quarter and the profit forecast for the current quarter fell short of Wall Street’s targets and P&G’s shares slipped 3 per cent in premarket trading. The maker of Crest toothpaste, Duracell batteries and a host of other products earned $2.21 billion, or 63 cents per share, in its third quarter, up from $1.61 billion, or 59 cents, a year earlier. P&G, which also makes Tide laundry detergent, Folgers coffee and Olay beauty products, said total net sales jumped 21 per cent to $17.25 billion. Unit volume rose 22 per cent, driven by growth in existing businesses and the addition of Gillette. Volume excluding acquisitions rose 5 per cent.