MoneyGram responds to shareholder's concerns over Euronet offer

By Lisa Kerner

Charlotte, N.C., Dec. 21 - MoneyGram International, Inc., in response to Blum LP's concerns about its discussions with Euronet Worldwide, Inc., said its willingness to meet with Euronet "was predicated upon entering into a mutually agreeable non-disclosure and standstill agreement."

Blum's Dec. 17 letter to MoneyGram's board urged the company to remove the standstill agreement and "enter into discussions with Euronet to secure the best possible value for MoneyGram shareholders."

The investor asked MoneyGram to respond by Dec. 21.

"We firmly believe confidentiality and an agreement that potential competitive and/or sensitive information cannot be used to the detriment of MoneyGram is in the best interests of our shareholders," MoneyGram chairman, president and chief executive officer Philip W. Milne said in his Dec. 21 letter to Blum.

"We have worked hard to reach a compromise with Euronet, but thus far they have rejected each of our proposals," Milne added.

Milne also noted that MoneyGram chose not to "engage in public dialogue" on the Euronet offer in the interests of its shareholders.

MoneyGram is open to "genuine proposals" from third parties on terms that maximize shareholder value, the letter stated.

As previously reported, Euronet said it welcomes the views of all MoneyGram shareholders and is pleased that Blum Capital "echoed Euronet's call for MoneyGram to negotiate" with Euronet "in good faith consistent with their fiduciary duty."

Euronet believes it made a "compelling offer" and would consider raising it "should MoneyGram provide non-public information that would justify an increase."

Euronet offered to acquire MoneyGram in an all-stock transaction valued at $1.65 billion, or $20 per MoneyGram share, with a fixed exchange ratio of 0.6179 of a Euronet common share for each share of MoneyGram.

Euronet offered interim financing, noting its $250 million of cash in the bank along with additional funds available from Euronet's existing financing arrangements.

MoneyGram is a payment services company located in Minneapolis.

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