Citicorp Buys AT&T;’s Credit Card Business

Citicorp’s $3.5-billion purchase of AT&T;’s credit card business gives the company a gold-mine list of 13.6 million AT&T; customers who could be ripe targets for banking and investment services. The 10-year agreement allows the Basking Ridge, N.J.-based AT&T; to wipe huge debts from its books and keep its name on the Universal card. It also gives the telecommunications power a chance to market its long-distance and Internet services to account holders at New York-based Citibank, the banking unit of Citicorp. In New York Stock Exchange trading, Citicorp shares fell $2.38 to close at $129.13, while AT&T; shares rose $1.25 to $59.13.