Venture capital investments have lost some luster over the past year, but the 49 banks that formed the ownership base of Star Systems Inc. have at least one reason to shine this earnings season.
Thanks to their bargain-basement investments in the automated teller machine network - and some stakes only grew bigger when owner banks acquired other Star member banks - the privately held network's sale in February to publicly traded Concord EFS Inc., the transaction processing company, could result in big windfalls, some topping the $100 million mark. Bank of America Corp., which is expected to report earnings today, was the largest investor, with an 18.8% stake in Star, or 972,000 shares. That investment would translate into 4.5 million shares of Concord, worth $195 million as of Feb. 1. Bank of America's cost basis, or what it paid for the stake in Star, is not publicly known.