The electronic payments giant says Euronet's $1 billion cash offer could result in a superior proposal. As Fred Katayama reports, if it determines that to be the case, Ant Financial would have four days to decide whether to up its ante.
MoneyGram is taking a closer look at Euronet Worldwide's unsolicited $1 billion bid. Sources say the electronic payments company has offered to share confidential data with Euronet and will get information from them so it can assess potential antitrust risks. Euronet's offer is 15 percent higher than the bid put out by Alibaba's financial services affiliate, Ant Financial. Back in January, MoneyGram had reached a deal to sell itself to Ant. Kansas-based Euronet, which operates HiFX and Ria Money Transfer, argues that its all-American deal would face less regulatory scrutiny than Ant's lower bid. Ant's deal is under review by a U.S. government panel that scrutinizes deals over potential national security concerns. Evercore ISI analyst Rayna Kumar said, "Combined with MoneyGram, Euronet would become one of the largest global money transfer players, allowing it to better compete against money transfer giant, Western Union with 500,000 agent locations." MoneyGram now says Euronet's cash offer could result in a superior proposal. If it determines Euronet's bid to be superior, Ant then has four days to decide whether it wants to up its ante.