J.C. Penney Stock Surges on Talk of Unit’s Sale

J.C. Penney Co. said it’s considering selling or finding a partner for its direct-marketing services unit, sending the retailer’s shares up $1.88, nearly 13%, to close at $16.56 on the Big Board. Plano, Texas-based Penney has hired the investment bank Credit Suisse First Boston to help it decide what to do with the division, which sells insurance and membership services. Analysts said the unit could be worth $1 billion to $1.5 billion. Penney said it would combine proceeds from a sale or joint venture with proceeds from a planned IPO of an Eckerd tracking stock to reduce debt and to buy back Penney stock.