Visa in talks to buy former subsidiary Visa Europe for up to $20 billion: Bloomberg
(Reuters) - Visa Inc V.N is in preliminary talks to buy former subsidiary Visa Europe Ltd, in a deal that could be valued at up to $20 billion, Bloomberg reported, citing people with knowledge of the matter.
The talks, which began when Visa approached Visa Europe, are at an early stage and could fall apart if the two sides cannot agree on a price, Bloomberg said. (bloom.bg/1GTU8L7)
Visa's shares were up 4 percent at $69.29 on the New York Stock Exchange on Friday.
The range being discussed is $15 billion-$20 billion and both companies are working with advisers, Bloomberg said.
Visa said last year it might have to pay more than $10 billion to buy its London-based European licensee, Visa Europe, if the owners exercised their option to sell it.
Visa Europe, which since 2007 has operated independently of Visa, is a cooperative of more than 3,700 European banks with more than 500 million cards in circulation.
Visa has a call option to buy shares in Visa Europe, while Visa Europe members have a put option to sell shares to Visa.
A spokeswoman for Visa declined to comment. Visa Europe was not immediately available for comment.
(Reporting by Neha Dimri in Bengaluru; Editing by Simon Jennings)
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