MoneyGram mum on rumors of takeover by Western Union

MoneyGram has nothing to say about rumors swirling in the media about a its possible acquisition by rival Western Union, saying it doesn’t comment on speculation.

A Bloomberg article on Tuesday sent word flying after it reported that Denver-based Western Union (NYSE: WU) was opening acquisition talks with MoneyGram International Inc. (Nasdaq: MGI). Western Union quickly squashed the story.

“Although our policy is not to comment on market rumors or speculation, and that continues to be our policy on a going forward basis, in view of the high level of market activity in our stock today, Western Union states that current news reports indicating that our company is in discussions to acquire MoneyGram International, Inc. are not accurate,” it said in a statement.

Dallas-based MoneyGram followed suit, declining to add fuel to the hearsay fire.

MoneyGram is North Texas’ 45th largest public company, according to DBJ research, reporting net income of $72.1 million for 2014. It employs 2,590 workers and has a footprint in more than 200 countries and territories.

Bloomberg reported Tuesday that acquisition talks were spurred by growing competition from Internet money transfer services such as TransferWise. Sources who asked to remain anonymous because the “matter is private,” reportedly told Bloomberg that “talks may still fall apart” over obstacles such as regulators opposing a Western Union/MoneyGram deal.

“If Western Union is indeed planning to buy MoneyGram, the result would be a monstrous monopoly that would impact the livelihoods of millions around the world,” said Ismail Ahmed, CEO of WorldRemit, a money transfer service, in a statement on Wednesday.

And while MoneyGram has a reported market value of $415 million, its $690 million in debt may have posed another hurdle. Western Union is worth $11 billion.

Source: bizjournals.com

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