Moneygram International Inc (NASDAQ:MGI) stock was up today now that a bidding war has started for it.
Euronet Worldwide, Inc. (NASDAQ:EEFT), which is based out of Kansas, is offering to purchase Moneygram International Inc for $15.20 per share. This beats out the offer of $13.25 per share that was previously made by Ant Financial, a Chinese company looking to expand to the United States by buying MGI.
The new bid made by Euronet Worldwide, Inc. puts Ant Financial’s expansion efforts in danger. Not only is EEFT offering more for Moneygram International Inc, but it also has a more likely chance of getting approval from regulators. This is due to President Donald Trump’s administration, which is focusing on keeping companies in the United States, reports Bloomberg.
Euronet Worldwide, Inc.’s offer for Moneygram International Inc values the company at more than $1 billion. It also represents a 28% premium to the stock’s closing price on Jan 26, 2017, which was the day before Ant Financial made its offer.
Euronet Worldwide, Inc. also argues that the acquisition of Moneygram International Inc will be beneficial for both companies. Its points to its history at having completed several acquisitions and working with management teams from those companies as evidence of this.
Euronet Worldwide, Inc. also tells shareholders that both companies will benefit from their different offerings. It notes that Moneygram International Inc has a focus on large retail outlets, while it has services that focus on independent agents.
Euronet Worldwide, Inc. is getting its financial advice from Wells Fargo Securities, LLC. Its legal advice for the deal comes from Gibson, Dunn & Crutcher LLP.
MGI stock was up 24% today and is up 33% year-to-date.