MasterCard is delaying its $2.45 billion initial public offering (IPO) until the second quarter of 2006 after its chief executive officer Bob Selander was diagnosed with prostate cancer.
The company had been expected to begin marketing the IPO to investors at roadshows in late January and the IPO was expected to be completed by the end of March. The lack of roadshows led to mounting speculation last week that the IPO would be postponed, although reasons for the delay were not known.
In a letter to shareholders, Selander says he is currrently recovering from surgery for prostate cancer. He says the operation was successful and his prognosis is "excellent".
Selander says he will work from home over the next couple of weeks but expects to be back in the office in early March.
"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," he says in the letter. "We expect that this, combined with the timelines for our first quarter results, will mean a delay in our transition to a new structure until the second quarter of 2006."
MasterCard said in September 2005 that it would hold an IPO which will give investors a 49% equity stake and voting control of the firm. The IPO is expected to raise about $2.45 billion.