Capital One Financial (COF) plans to buy Discover Financial Services (DFS) in an all-stock deal that could be announced Tuesday, AnnaMaria Andriotis and Lauren Thomas of Wall Street Journal report, citing people familiar with the matter. Discover has a market value of about $28B, and the takeover would be expected to value it at a premium to that, the Journal reports. Capital One uses Visa (V) and MasterCard (MA) for most of its cards and plans to switch at least some of its cards to the Discover network, while continuing to use Visa and Mastercard on others, the paper adds. Capital One also plans to maintain the Discover brand on the cards and network, the Journal says.
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