Western Union in talks to buy smaller rival MoneyGram

[BENGALURU] Western Union Co, the world's largest money transfer company, is in early-stage talks to acquire smaller rival MoneyGram International Inc, Bloomberg reported, citing people with knowledge of the matter.

Shares of MoneyGram, which has a market value of about US$400 million as of Tuesday close, were up 32 per cent at US$10.30 in after-market trading.

MoneyGram had US$963.5 million in long-term debt as of Dec 31, according to its annual filing.

Western Union has a market value of about US$11 billion.

Talks may still fall apart, Bloomberg said in its report. One potential hurdle is whether regulators would block the deal on antitrust grounds, the report said.

A spokeswoman for MoneyGram said the company does not comment on rumors and speculation.

Western Union could not be immediately reached for comment.

REUTERS