Processing Firm Considers Unit Sale

LOUISVILLE, Ky. — National Processing Inc. is exploring the sale of its freight payment processing business.

The company’s NPC Freight Services unit is the nation’s largest third-party freight payment processor, handling more than 40 million freight bills annually and disbursing more than $6.5 billion to carriers on behalf of large corporations such as General Motors Corp., Boeing Co. and General Electric Co.

National Processing said it has retained Salomon Smith Barney to advise it on the possible sale and to investigate strategic options, including the restructuring, divestiture or liquidation of certain lines of business.

The three business lines being considered for sale provide processing and oversight of freight payments for shippers, administration of accounts payable on an outsourcing basis and remittance processing for large companies.

Decisions are expected to be made in the first quarter of 1999, the company said.

National Processing is 88% owned by National City Corp.

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