NEW YORK - The value of stock in Memphis, Tenn.-based Concord EFS Inc. fell more than 19 percent, a drop which may have been triggered by a story reported by Bloomberg News that said the company had put itself up for sale.
The Bloomberg story, according to Reuters, said Concord had put itself on the market for $6 billion. Based on that news, and investor concern that the ATM transaction processor has had difficulty renewing accounts for its Star electronic funds network, the stock price plummeted to a three-year low, according to Reuters. Concord purchased the Star network in 2000 for $850 million in stock, which gave it control of nearly half the debit transactions in the U.S.
One analyst, Kartik Mehta of Midwest Research, was quoted saying up to eight large Star network contracts will expire at the end of the year. The Reuters piece said a Concord representative declined comment on the story.
According to the Bloomberg story, Goldman Sachs Group Inc. will advise Concord on a possible sale. By mid-afternoon March 10, Concord stock had fallen from an opening price of $10.35 to a low of $8.15.
