MoneyGram to give Euronet confidential info to firm up bid-sources


Reuters

By Greg RoumeliotisMarch 19 (Reuters) - U.S. electronic payments company
MoneyGram International Inc <MGI.O> will share confidential
information with peer Euronet Worldwide Inc <EEFT.O>, after the
latter made a $1 billion acquisition offer, according to people
familiar with the matter.
    MoneyGram has found that Euronet's cash offer of $15.20 per
share, which was unveiled last week, could be expected to result
in a superior proposal compared to a deal it agreed to in
January to sell itself to China'sAnt Financial Services Group
for $13.25 per share in cash, the people said on Sunday.
    Euronet is now expected to take approximately a week going
through MoneyGram's books before firming up its offer, the
people said. MoneyGram will also receive information from
Euronet that will allow it to better assess potential antitrust
risks to such a deal, the sources added.
    Should MoneyGram declare Euronet's bid superior, Ant
Financial will have four business days to decide whether it
wants to improve its offer.
    The sources asked not to be identified because the
deliberations are confidential. Euronet, MoneyGram and Ant
Financial declined to comment.
    Based in Dallas, MoneyGram is one of the biggest players in
the global remittance market. An acquisition would enable
Euronet to better compete against digital startups which are
transforming the money transfer business.
    Euronet has also argued that MoneyGram's focus on large
retailers and national post offices, combined with Euronet's
strong position with independent agents and its broad set of
consumer payment solutions, would also create a more valuable
business.
    While a deal with Euronet would bring cost synergies, a
combination of Ant Financial's technological expertise and
MoneyGram's brand had been seen as a game-changer for the
international payments industry, with scope for more consumers
to use online transfer services rather than taking cash to store
fronts.
    Ant Financial, the financial services affiliate of Alibaba
Group Holding Ltd <BABA.N>, dominates China's online payment
market, and has been ramping up investment overseas amid fierce
rivalry at home with peers such as Tencent Holdings Ltd's
<0700.HK> popular WeChat Pay.
    Ant Financial's acquisition of MoneyGram is currently being
reviewed by the Committee on Foreign Investment in the United
States, a government panel that scrutinizes deals over potential
national security concerns.
    MoneyGram will have to pay Ant Financial $30 million as a
termination fee if it abandons their deal for another bid.

 (Reporting by Greg Roumeliotis in New York; Editing by Phil
Berlowitz)
 ((Greg.Roumeliotis@thomsonreuters.com; +1 646 223 6022; Reuters
Messaging: greg.roumeliotis.thomsonreuters.com@reuters.net))

Keywords: MONEYGRAM INTL M&A/EURONET WORLDWID



This article appears in: Stocks , World Markets , Stocks
Referenced Symbols: 0700 , BABA , EEFT , MGI


More from Reuters

Subscribe






See headlines for 0700

Follow on:








Research Brokers before you trade

Want to trade FX?