Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Moneygram International Inc Stock Is Soaring Today

What's happening?

Shares of Moneygram International Inc (NASDAQ: MGI  ) are up about 25% as of 11:30 a.m. EDT on news that Euronet Worldwide, Inc.  (NASDAQ: EEFT  ) made a competing offer to acquire the company.

So what

Euronet Worldwide proposed an acquisition in which it would pay $15.20 in cash for each Moneygram share. The proposal values Moneygram shares at a 15% premium to a takeover bid by Ant Financial, which made an acquisition bid of $13.25 per Moneygram share in January. 

"M&A" spelled out with black letter blocks.

Image source: Getty Images.

Euronet Worldwide believes that its offer is better for Moneygram shareholders. Unlike Ant Financial, a deal with Euronet would not need to be reviewed by the Committee on Foreign Investment in the United States, nor would there be any closing condition related to whether or not the company could take control of certain money transmitter licenses.

In a presentation to detail its offer, the company noted that it had committed financing from Wells Fargo, and that it believed it could close by the end of 2017.

Now what

Wall Street seems to think that Euronet's offer may kick off a bidding war. Shareholders are willing to pay a premium to potentially catch a quick gain if Ant Financial comes back to make an improved offer.

At a recent price of $15.78 per share at 11:30 a.m. EDT on Tuesday, Moneygram shares traded at a 3.8% premium to Euronet's offer. Prior to Euronet's proposal, Moneygram shares closed at $12.66 per share, a 4.4% discount to Ant Financial's bid.

10 stocks we like better than MoneyGram International
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and MoneyGram International wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of February 6, 2017

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 4008256, ~/Articles/ArticleHandler.aspx, 3/23/2017 12:19:25 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
Change up DOW 20731.9 70.6 0.3%
Change up S&P 500 2356.4 8.0 0.3%
Change up NASD 5837.3 15.6 0.3%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

3/23/2017 12:03 PM
MGI $16.65 Up +0.04 +0.24%
MoneyGram Internat… CAPS Rating: *
EEFT $82.87 Down -0.29 -0.35%
Euronet Worldwide CAPS Rating: *****
WFC $55.72 Up +0.39 +0.70%
Wells Fargo CAPS Rating: ****

Article registration testing

Revisit this page

Clear article's cache and revisit this page

Or, visit the current page, forcing Test ID to article:interrupt:106919 and

Tookie Value = 10658998818352374276456578192145