(Corrects the name MoneyGram in paragraphs 4 and 8, Alibaba and
WeChat in para 10; repeats to restore story to screens)
By Greg Roumeliotis
March 19 U.S. electronic payments company
MoneyGram International Inc has offered to share
confidential information with peer Euronet Worldwide Inc
, after the latter made a $1 billion acquisition offer,
people familiar with the matter said.
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 with a deal it agreed to in
January to sell itself to China's Ant Financial Services Group
for $13.25 a share in cash, the people said on Sunday.
Before Euronet carries out its due diligence on MoneyGram,
it will have to agree to the terms of a non-disclosure
agreement, the people added. Negotiations on such a
confidentiality pact may take several days, the people
Euronet is then expected to take about 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 that 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 create a more valuable
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
Ant Financial, the financial services affiliate of Alibaba
Group Holding Ltd, 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
popular WeChat Pay.
Ant Financial's acquisition of MoneyGram is being reviewed
by the Committee on Foreign Investment in the United States, a
government panel that scrutinizes deals over potential national
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 and Peter Cooney)