Bidding War for Western Union Nears $1 Billion
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NEW YORK — A bidding war for Western Union Financial Services Inc. heated up Friday as rival suitors for the world’s largest money-transfer business raised the stakes to nearly $1 billion.
Buyout specialist Forstmann Little & Co. sweetened its offer to $970 million for Western Union, a financially ailing unit of New Valley Corp. New Valley has been in Chapter 11 bankruptcy protection since March, 1993.
First Financial Management Corp., a diversified data-processing company, raised its package to $800 million.
But First Data Corp., the huge credit card-processing bureau that started the unsolicited takeover battle in June, refused to raise its $660-million bid, saying it was fair.
In June, the auction landed in Bankruptcy Court in Newark, N.J.--where New Valley had filed for bankruptcy protection--after Bankruptcy Court Judge Novalyn Winfield called for a “fair and level playing field” for the bids.
Western Union, the worldwide leader in the non-bank immediate money-transfer business, has had financial troubles for a decade but is not in bankruptcy.
The bids have risen so high that the winning package virtually guarantees that New Valley’s creditors will be fully repaid.
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