Euronet Worldwide and MoneyGram International takeover discussions are moving ahead at a slower pace than expected, reported Bloomberg News.
According to the report, which cited people familiar with the matter, Euronet was hoping to reach a fast deal, but more than a week after inking a non-disclosure to hold deal talks, it still has not been able to access MoneyGram’s full non-public financial data. The companies are fierce competitors and are still in talks over what information MoneyGram will make available in the data room.
Euronet needs to see the information to conduct proper due diligence on the offer, which stands at $15.20 a share, noted the report. The discussions between the two are still on friendly terms with both sides expecting an agreement that enables Euronet to access the data this week. When the bid by Euronet was made, the company highlighted the fact that it is familiar with MoneyGram and willing to move quickly on a deal. That raised expectations by industry watchers, analysts and investors that talks would be farther along at this point in time.
“The market is waiting to see a resolution,” said Lawrence Berlin, an analyst and senior vice president with First Analysis Corp. who covers MoneyGram, told Bloomberg. “We were all expecting something, but I think it takes time. They know a lot about MoneyGram at this point. We all hoped it would happen faster than it was going to happen. We just have to be patient.”
In January, Ant Financial, the financial arm of Alibaba, inked a deal to acquire MoneyGram for $880 million and was seen as a way for Ant Financial to expand into the U.S. Euronet stepped up with a higher offer last month and signed a non-disclosure agreement at the end of March once MoneyGram found Euronet’s offer was higher. Talks have been slowed down by MoneyGram’s worries about sharing information with a rival. MoneyGram is also concerned about antitrust scrutiny that a sale to Euronet would bring, noted the report.