UPDATE 3-Euronet ends talks to buy rival MoneyGram

jueves 28 de febrero de 2008 22:15 CET
 

(Adds analyst's comments, updates share movement)

By Sweta Singh

BANGALORE Feb 28 (Reuters) - Electronic payments provider Euronet Worldwide Inc (EEFT.O: Cotización) said it would not go ahead with its proposal to buy rival MoneyGram International Inc (MGI.N: Cotización), citing the turmoil in the debt and equity markets.

In the current market environment, the proposal would not give Euronet's shareholders addition and return on investment that we would require, Euronet Chief Executive Michael Brown said in a statement.

The deal was not in the best interest of Euronet, so they pulled out of it, Anurag Rana of Keybanc Capital markets said by phone.

"They probably were not able to raise enough money to buy MoneyGram," Rana added.

Euronet said it has ended talks with MoneyGram and its advisers.

MoneyGram's investment portfolio has taken a hit due to deteriorating credit market conditions, and the company has been struggling to move away from riskier asset-backed securities to safer instruments like government debt.

Shares of MoneyGram closed down nearly 20 percent at $3.70 on the New York Stock Exchange Thursday, while Euronet shares closed at $22.20 on Nasdaq, down about 1.5 percent.   Continuación...