JPMorgan Tips Hand on Payments Hopes Despite Bailing on Worldpay

Worldpay Group, a British payment processing firm, announced on Wednesday that Vantiv has offered $10 billion towards the fintech company's acquisition.

Digital transaction processing firm Worldpay has confirmed to the London Stock Exchange that it has received acquisition bids from both Vantiv and JP Morgan Chase in the USA, after reports started to circulate that the $10bn (£7.7bn) firm was open to a takeover.

That makes the total value for Worldpay shareholders 385 pence per share, a premium of 18.9 percent to the firm's stock close on Monday, but down from the high of 409.5 pence the share price hit yesterday before the announcement.

The deal is being billed as a merger but under the terms Worldpay would renounce its place on the FTSE 100 and the combined group's shares would trade exclusively in NY with Worldpay investors holding 41%.

Worldpay shareholders are entitled to 55 pence in cash for each Worldpay share and 0.0672 new Vantiv shares.

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The companies will effectively merge, with Charles Drucker taking on a role as executive chairman and Co-CEO and Philip Jansen as Co-CEO.

Analysts said on Tuesday - before terms of a deal with Vantiv emerged - that news of the talks was likely to trigger a bidding war for the payments processor, which is behind around 400 payments a second each day.

While the deal is not yet official, Worldpay said in a statement that it has agreed to the offer in principle.

Worldpay Group PLC's stock soared almost 30% Tuesday, becoming the star performer in the U.K.'s FTSE 100 as two suitors approached the payments processor about a potential merger.

Wall Street Wires cited unnamed City sources as suggesting Worldpay had been approached by suitors. 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 lender, which had considered making a bid for Worldpay, walked away Wednesday after Vantiv's offer became public. Neither company could be reached for comment in the United States, which is marking the July 4 holiday.

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