FTSE 100 lower despite Worldpay share surge

FTSE 100 lower despite Worldpay share surge

Over the weekend Danish card payment services company Nets A/S said it had been approached by potential buyers, which market observers say could involve established payment giants Mastercard or Visa.

Worldpay processes millions of payments daily in stores, online and on cellphones, predominantly across the United Kingdom and the U.S. As of Monday evening-before the approach was disclosed-it had a market value of GBP6.39 billion ($8.24 billion).

If it were finalized, a deal involving Vantiv would expand the Cincinnati-based company's geographic footprint.

Worldpay, which was valued at £4.8bn when it floated in 2015 after its split from RBS following the financial crisis in 2009, is a unique asset suggested Mediobanca. At noon the shares were up 25.4 per cent.

United Kingdom shares were slightly lower on Tuesday as oil and mining stocks succumbed to profit taking after sharp gains the previous day.

Analysts said that other companies might now be interested in making a bid.

Worldpay said: "The board notes the..."

They now have until August 1 to firm up their approach, according to takeover rules. Vantiv could not be reached for comment. No comment was released by JPMorgan, while Vantiv failed to respond to a request for a comment.

The payment processing industry has grown rapidly as consumers shun cash.

Worldpay's stock value rocketed during morning trading on the London Stock Exchange (LSE), valuing the company at more than £7 billion.

The payments firm, which was set up in 1994 by Nick Ogden, was sold to Royal Bank of Scotland in 2002 and later bought by private equity firms Advent International and Bain Capital, which invested around £700m in the deal.

The company was listed two years ago and is a constituent of the FTSE 100 index.

"There are a lot of companies still, and we are probably going to have only one or two big leaders in the payments space".



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