Target Corp., the second-biggest U.S. discount retailer, said it's in talks with an investment partner to sell about half of its credit-card loans for $4 billion.

A sale would free up cash for the retailer and would create a ``new, long-term'' relationship with a partner whose experience may benefit the company's future strategies, Minneapolis-based Target said today in a statement.

The discount retailer began reviewing the possible sale of its credit-card portfolio in September, two months after investor William Ackman bought a stake in the company. His Pershing Square Capital Management LP, Target's largest shareholder, is seeking stock buybacks, the sale of the credit- card portfolio and a real estate deal to increase stock value.

Target said if it agrees to a deal, the transaction may be completed in the second quarter. An accord may not be reached, it said.

Fourth-quarter revenue from Target's $8.3 billion credit- card portfolio jumped 21 percent to $532 million, the retailer said last month.

Target postponed an initial 2007 year-end deadline for a decision about the unit, saying it would decide by the end of this month.

Target advanced 1.4 percent to $51.80 at 4:58 p.m. in trading after U.S. markets closed. Earlier, the shares fell 49 cents, or almost 1 percent, to $51.09 in New York Stock Exchange composite trading. The shares have gained 2.2 percent this year.

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