Worldpay share price dips as group strikes takeover deal with Vantiv

Worldpay share price dips as group strikes takeover deal with Vantiv

Worldpay Group has been approached by JPMorgan Chase and rival Vantiv about a possible acquisition - less than two years after the FTSE 100 payments processing company listed.

A spate of dealmaking news swept European stocks on Tuesday, with Worldpay soaring after bid approaches, helping mitigate a broad based pull back from the previous session's strong gains.

The stock fell about 8 percent on Wednesday to 3.73 pounds ($4.82) per share.

Worldpay Shareholders would also be entitled to a cash dividend of 5 pence per Worldpay share, in place of any anticipated interim dividend payment.

Cambridge Science Park company Worldpay, the UK's largest electronic payment processing group, is in a takeover tug-of-war involving two American competitors. Vantiv Chief Charles Drucker and Worldpay CEO Philip Jansen will jointly run the new company.

Vantiv has until August 1 to make a firm offer, according to takeover rules.

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Britain's biggest payments processor announced the development shortly after Sky News revealed that credit card technology firm Vantiv had been locked in discussions all night on securing an agreement with the Worldpay board.

Earlier JP Morgan bank said it would not make an offer for Worldpay.

Morgan Stanley advised Vantiv, while Goldman Sachs advised Worldpay.

Set up in 1989, it was part of Royal Bank of Scotland before being spun out to private equity ownership and then floated on the London Stock Exchange in 2015 with a valuation of £4.8bn. The company says that its business will cover the US, Europe, Asia-Pacific and South America, "including numerous world's largest e-commerce merchants, and a substantial base of merchants of all sizes in Europe and the US". The board will consist of four Worldpay and seven Vantiv directors. Vantiv Chief Financial Officer Stephanies Ferris would take up the CFO role in the merged firm.

Worldpay Group plc is a United Kingdom-based company, which provides a range of technology-led payment products and services.

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