Western Union Co. denied it is in talks to acquire rival money-transfer company MoneyGram International Inc.
Both stocks had surged late Tuesday on media reports that the companies were in talks to combine, but those gains were pared following the denial.
Western Union was up 4.5 percent at $21.89 at 1 p.m. MDT Wednesday, while MoneyGram traded 15 percent higher at $8.97.
“Although our policy is not to comment on market rumors or speculation, and that continues to be our policy on a going-forward basis, in view of the high level of market activity in our stock today, Western Union states that current news reports indicating that our company is in discussions to acquire MoneyGram International Inc. are not accurate, ” Western Union said in a press release Wednesday.
Douglas County-based Western Union has faced increased competition in recent years from companies as diverse as PayPal, Apple Inc. and Walmart Stores Inc. as it expands from a cash-based business to one with an increased focus on digital payments.
Meanwhile, retailer Wal-Mart’s move last year to start its own money-transfer business has weighed on MoneyGram’s money-transfer transaction volume.
