Amid the latest news of a potential acquisition involving the U.S. money transfer giant Moneygram and the Foundation for Stellar Development, stellar (XLM) rallied.
As of 8:52 a.m. UTC, XLM, ranked 17th by market cap, trades at $ 0.253 and is up 17% in one day, 5% in a week, and 163% in a year. The price is still down around 70% from its all-time high, reached in January 2018. It hit $ 0.727 last May.
Moneygram has received preliminary takeover interest from the Stellar Development Foundation – a nonprofit that supports the Stellar network, which facilitates cross-border payments – and a private equity firm Advent International, Bloomberg reported, citing “people familiar with the subject”.
They reportedly said that Stellar was working with Advent on a potential acquisition of MoneyGram, but that “no final decision has been made and Stellar and Advent may choose not to enter into a deal.”
Meanwhile, MoneyGram has climbed nearly 12% on July 21, priced at $ 11.49. The stock has risen 265% in the past year, while the company has a market value of $ 902 million.
The report also noted that MoneyGram has been “a takeover target” for a number of years now. Money transfer provider Western Union planned to acquire it last year, and before that, in 2017, the Chinese financial services conglomerate Group of ants agreed to buy it, but then changed her mind due to regulatory pressure.
The agreement came after the XRP-affiliated Ripple ad the end of its partnership with the company, under which MoneyGram used XRP in international settlement agreements. This itself was the result of Ripple ongoing legal issues with the United States Securities Commission (SECOND).
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