FIS is making preparations to break up and plans to pursue a tax-free spin-off of its merchant business, David French, Anirban Sen and Milana Vinn of Reuters report, citing people familiar with the matter. The spinoff will take many months to be completed, and FIS will also entertain any acquisition offers for the unit during this period, sources told Reuters. The company could announce the spinoff as early as next week, the people added.