business

A shareholder of MoneyGram International Inc., the St. Louis Park-based money-transfer company, urged its board to discuss a buyout offer from smaller rival Euronet, saying MoneyGram's response so far is "antithetical" to maximizing the company's value.

Euronet Worldwide Inc. has proposed paying $1.65 billion in stock for MoneyGram, which has hit hard times because of its investments in real estate loans.

MoneyGram said it was willing to talk only if Euronet would sign a so-called "standstill" agreement, meaning it would stop pursuing its bid.

In a letter filed with the Securities and Exchange Commission, Gregory Jackson of Blum Capital Partners said "the onerous restriction of a standstill agreement is antithetical to the goal of shareholder value maximization during a proposed negotiation process."

The letter was dated Monday and filed with the SEC on Tuesday. It said that Blum, a San Francisco-based investment company, bought 9.8 percent of MoneyGram beginning Oct. 23.

Jackson wrote that Blum does not necessarily believe MoneyGram should be sold to Euronet, only that it should discuss the idea with Euronet. He asked for a response by Friday. His letter also criticized what he said was MoneyGram's lack of disclosure about the risk from its mortgage holdings.

"We also find it disturbing that management would allow any non-core asset, such as the investment portfolio, to jeopardize potentially the entire enterprise," Jackson wrote.

Last Thursday, MoneyGram said it had not finished valuing its securities portfolio as of Nov. 30, and warned that "investors should not expect that MoneyGram's financial results will be consistent with its previously announced 2007 outlook."

MoneyGram spokeswoman Cathy Rebuffoni declined Tuesday to discuss the letter.

Euronet, based in Leawood, Kan., said in a statement that it is prepared to sign a confidentiality agreement immediately to begin negotiations with MoneyGram.

FROM NEWS SERVICES