First USA Inc. and its merchant processing subsidiary plan to raise up to $275.8 million by issuing more stock in the unit.

Analysts said the fourth-largest issuer of MasterCard and Visa would use the proceeds from selling four million shares of First USA Paymentech to fund its own core business. Paymentech is to sell 2.8 million primary shares and would use the income to pay for an acquisition and possibly gear up for another.

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