The £9bn war of independence
US tech firm takeover delayed in stand-off over pledge to keep jobs and HQ in the UK
THE £9bn takeover of payments firm Worldpay by an American rival is in deadlock over plans to guarantee jobs and a headquarters in the UK, the Mail understands.
Yesterday, Cincinnati- based Vantiv asked for more time to strike a deal with Worldpay, the second time it has delayed its takeover bid.
It now has until Friday to make an offer or must walk away for six months, although extensions are possible if regulators agree.
It fuelled speculation Worldpay’s board was seeking reassurances about an independent role for its UK business, rather than having it be consumed.
The boss of Worldpay, Philip Jansen, told the Mail this week he would consider seeking binding promises about jobs and the role of the British business after the takeover.
Sources close to the deal said bosses want to keep the company’s London headquarters and other facilities such as the development centre in Cambridge.
It is understood they also expect a guarantee on British jobs – including 5,000 staff in London.
The undertakings would be similar to a pledge secured by smartphone chip maker ARM Holdings when it was acquired by Japanese firm Softbank.
A takeover agreement was struck in principle by Worldpay and Vantiv last month but yesterday a market update said the companies had requested more time. Worldpay said: ‘Positive discussions are continuing.’
The spokesman for Worldpay refused to comment further on the talks but Laith Khalaf, a sen- ior analyst at Hargreaves Lansdown, said it was possible a closer examination of balance sheets could have led to other hurdles.
He added: ‘ This looked like it was pretty much a done deal but potential stumbling blocks could include the composition of the new board or anything that has come up in due diligence.
‘They may be dotting the “i”s and crossing the “t”s or it is possible some of the additional due diligence is being used as bargaining power in one way or another. Something has clearly thrown up more for the board to digest than what they previously thought.’ The extension of the deadline for a takeover bid means the announcement of Worldpay’s half year results and Vantiv’s second- quarter 2017 results have been pushed back to today.
Worldpay handled 15bn transactions last year, with the firm taking its profits from commissions when its technology is used at card terminals. It deals with more than 40pc of such payments in the UK and its platform is particularly popular with small and medium sized companies.
The company’s board will enjoy a £91.3m bonanza if the takeover goes ahead although chief executive Philip Jansen has insisted executives are ‘not doing it for the money’. by Matt Oliver