Alibaba Group Holding Ltd (NYSE:BABA) is trending today after its financial affiliate, Ant Financial, increased an offer to buy the money transfer service Moneygram International Inc (NASDAQ:MGI) to $18 in cash per share, or around $1.2 billion. Ant Financial previously offered $13.25 per share for the service, but that was later but upstaged by a higher bid from Euronet Worldwide. Given Ant’s new proposal, Moneygram International Inc (NASDAQ:MGI)’s board has unanimously approved the new agreement/offer, and shares of the money transfer service are up around 4.5% in the pre-market on Monday. There is still an element of uncertainty, however, as the U.S. government could potentially review the deal for national security reasons and otherwise.
If Ant succeeds in buying Moneygram, Alibaba’s financial affiliate would be more global and have a bigger presence in Mexico. In separate news, the Chinese economy grew at the fastest pace in over a year, at 6.9% for the first quarter. Stronger-than-expected growth could potentially lead to better results for Alibaba in the near term.
What Does The Smart Money Sentiment Say?
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Of the 742 elite funds we track, 86 funds owned $5.9 billion of Alibaba Group Holding Ltd (NYSE:BABA) and accounted for 2.70% of the float on December 31, versus 104 funds and $8.27 billion respectively on September 30.
The Bottom Line
Alibaba Group Holding Ltd (NYSE:BABA) is in the spotlight today after its giant financial affiliate, Ant Financial, bid $1.2 billion for the money transfer service Moneygram International Inc (NASDAQ:MGI). For more reading, check out ‘11 Most Profitable Companies in China‘.