Online: | |
Visits: | |
Stories: |
Story Views | |
Now: | |
Last Hour: | |
Last 24 Hours: | |
Total: |
Money transfer outfit MoneyGram International Inc (NASDAQ:MGI) is mulling spurning e-commerce giant Alibaba Group Holding Ltd (NYSE:BABA) after receiving a rival offer.
Shares in MoneyGram shot up 24% to US$15.70 after it was revealed Euronet Worldwide Inc (NASDAQ:EEFT) has made a US$15.20 a share offer for MoneyGram, topping an offer from Alibaba that the board of MoneyGram has already agreed to accept.
Euronet’s terms value MoneyGram at more than US$1bn, plus it is taking on some US$940mln of MoneyGram’s debt.
In an oblique reference to the rival bid from Asia-based Alibaba, Euronet said its bid offers stockholders “a clear and significantly more certain path to a faster closing with no required review by the Committee on Foreign Investment in the United States (“CFIUS”) and no closing condition related to securing change of control consents covering money transmitter licenses in the jurisdictions in which MoneyGram operates”.
Both companies have highly complementary distribution channels that will best position the combined business to grow in the highly fragmented global money transfer industry, Euronet said.
Shares in Euronet edged 1% higher to US$83.76 while shares in AliBaba were down 0.4% at US$104.69.
Story by ProactiveInvestors