DOW JONES NEWSWIRES
Payment-processing firms VeriFone Systems Inc. (PAY) and
Hypercom Corp. (HYC) scrapped plans to sell Hypercom's U.S.
point-of-sale business after U.S. regulators last week said the
divestiture wouldn't satisfy antitrust concerns.
The U.S. Department of Justice last week filed a lawsuit to
block VeriFone's proposed $485 million acquisition of Hypercom and
said the sale of Hypercom's point-of-sale business to France's
Ingenico S.A. (ING.FR). The three companies together manufacture
more than 90% of all U.S. point-of-sale terminals, which are used
to process credit-card payments.
The department's complaint alleged that the merger of VeriFone
and Hypercom would result in a dominant terminal manufacturer that
would likely raise prices and reduce innovation.
"We are gratified that the parties recognized the
anticompetitive nature of the agreement and abandoned its
divestiture plan promptly," department Assistant Attorney General
Christine Varney said. "Our discussions with the companies will
continue as they seek to find an alternative buyer that will
resolve the department's antitrust concerns."
The companies weren't immediately available for comment.
VeriFone shares closed up 2.6% to $46.62, while Hypercom ended
up 3.8% at $10.07.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com