ational Processing Inc. said it's considering putting itself on the auction block. In a statement released Thursday, May 27, 2004, the parent of National Processing Company, LLC said its board of directors "is reviewing the company's various strategic alternatives, including but not limited to the potential sale of the company." NPC, headquartered in Louisville, is the second largest provider of credit and debit card processing in the United States, behind First Data Corp. NPC processes for more than 700,000 Visa and MasterCard merchant locations-about one out of every five Visa and MasterCard transactions made in the United States each year-and employs more than 1,600 people.

National City Corp., a large financial services holding company based in Cleveland, owns an 83% stake in the company. In its statement, National City said "no assurance can be made that any transaction will be consummated," or that the company would get the kind of money it's looking for, but would not elaborate further.

Industry insiders have said the company has engaged to investment banking firm of Morgan Stanley to help price the potential sale. While no potential buyers have been identified, the industry rumor mill is buzzing with the names of likely suitors, including First Data, Heartland Payment Systems, Bank One and Wal-Mart. NPC shares rose $3.27-more than 12%-in afternoon trading on Friday, May 28, at $28.20 per share.