June 22, 2009 / 1:27 PM / 9 years ago

UPDATE 2-Fidelity says DoJ request will delay Metavante merger

*Cos say DoJ seeks additional information

*Says HSR waiting period will be extended for 30 days

*Fidelity shares dip as much as 2 pct, Metavante drops 4 pct (Recasts, adds comments from companies, analyst, background on merger, share movement)

By Brenton Cordeiro

BANGALORE, June 22 (Reuters) - Electronic payment processor Fidelity National Information Services Inc (FIS.N) said its proposed merger with Metavante Technologies Inc MV.N will be delayed after the companies received a request for additional information from the U.S. Department of Justice (DoJ).

The waiting period under Hart-Scott-Rodino Act would be extended by 30 days after the companies provide the required information, the companies said in a statement.

“We announced the deal on April 1st, and we at that time anticipated that it would close sometime in the third quarter, and now we are expecting a fourth quarter call,” said Mary Waggoner, senior vice president of investor relations, at Fidelity National.

Christine Barry, research director at Aite Group, said such requests that causes delay of a transaction wasn’t common, but could be reflective of the current environment that was getting more regulated, adding “it could be something we’re seeing more of going forward.”

    Fidelity National did not disclose the specifics of the DoJ request, while Metavante refused to comment on the matter.

    “They’re not asking any questions that are surprising us or out of the ordinary. We view it as part of the process,” Fidelity National’s Waggoner said.

    In April, Fidelity National had agreed to buy Metavante for about $2.94 billion, to create the world’s largest provider of integrated payment and financial processing services.

    Fidelity National’s shares were trading lower by 11 cents at $19.6, in afternoon trade on the New York Stock Exchange. Metavante’s shares were also down 64 cents or 2.4 percent at $25.76. (Reporting by Brenton Cordeiro in Bangalore, Editing by Deepak Kannan, Dinesh Nair)

    0 : 0
    • narrow-browser-and-phone
    • medium-browser-and-portrait-tablet
    • landscape-tablet
    • medium-wide-browser
    • wide-browser-and-larger
    • medium-browser-and-landscape-tablet
    • medium-wide-browser-and-larger
    • above-phone
    • portrait-tablet-and-above
    • above-portrait-tablet
    • landscape-tablet-and-above
    • landscape-tablet-and-medium-wide-browser
    • portrait-tablet-and-below
    • landscape-tablet-and-below