asterCard Inc.'s initial public offering (IPO), which was planned for the first quarter of 2006, has been postponed to the second quarter of 2006 due to the health of MasterCard Chief Executive Officer Bob Selander.

Recently diagnosed with prostate cancer, Selander underwent surgery in February. In a letter to MasterCard shareholders dated Feb. 16, he wrote, "While I have already resumed my normal responsibilities, I have been advised not to undertake a demanding travel schedule, such as a road show, over the next couple of months. ... [T]he new structure will mark the start of a new chapter in MasterCard's history. I am personally looking forward to leading us there, to bringing even greater value to our customers and to delivering excellent business results."

As reported previously, MasterCard is on track to sell 61.5 million shares of Class A common stock, representing a 49% stake in the organization, for an anticipated $2.45 billion to raise capital for expansion (see "MasterCard Plans IPO," The Green Sheet, Sept. 26, 2005, issue 05:09:02 and "MasterCard IPO May Raise $2.45 Billion," The Green Sheet, Oct. 10, 2005, issue 05:10:01). A new governance structure is expected to increase transparency, which the company hopes will deflect public criticism of its operations and mitigate the impact of pending lawsuits, should they result in financial judgments against MasterCard.

Shareholders have endorsed the transition, and Selander said that the first independent directors have been identified. The banks that make up MasterCard's current board of directors will have a 41% share of nonvoting Class B common stock, and a new charitable foundation will own 10% of the company. Goldman Sachs & Co. is managing the offering, and the stock is expected to trade on the New York Stock Exchange under the symbol MA.

In a separate Feb. 16 letter to shareholders, MasterCard's Chairman Baldomero Falcones expressed full support for Selander, stating that he looks forward to working with him "in implementing our new structure, bringing value to our customers and delivering excellent business results."