STRATEGIC PARTNERS
May 22, 2003
DENVER -- First Data Corp. (NYSE:FDC) has refiled its agreement to acquire Concord EFS Inc.
First Data said it refiled its pre-merger notification and report form with the U.S. Department of Justice (DOJ) and Federal Trade Commission on May 13. It withdrew its initial pre-merger filing on May 9, saying it wanted more time to get antitrust approval after holding talks with the DOJ.
The refiling provides for an additional 30-day review period for the staff of the DOJ.
While some analysts had speculated the transaction could face stiff regulatory scrutiny because the combined company would control about 70 percent of U.S. PIN-based debit transactions, a Reuters report cited sources close to the companies who said the refiling was done simply to expedite the approval process.
"This approach is consistent with First Data's approach in the past, which is to engage directly with the regulators to address their questions," First Data said in a statement. "First Data believes that the approval process will be equally effective with this transaction."
First Data said the Payment System Working Group, a sub-group of the National Association of Attorneys General, has requested a copy of the merger information filed with the Justice Department. First Data said it intends to cooperate with the association.
First Data also said it has filed its registration statement with the U.S. Securities and Exchange Commission to register the shares that will be issued in the proposed merger.
The transaction currently values Concord at $15.69 per share, an 8.4 percent premium to its current stock price, according to Reuters.
First Data said it still expects the deal to close during the second half of 2003.
Separately, First Data said that its board of directors had increased the company's total stock buyback authorization to $1.5 billion, up from $355 million previously. The company had suspended its repurchase program after it opened negotiations with Concord in mid-February.
