DENVER and MEMPHIS, Tenn., Oct. 23 /PRNewswire-FirstCall/ -- First Data
(NYSE: FDC) and Concord EFS (NYSE: CE) today characterized the complaint filed
by the U.S. Department of Justice (DOJ) challenging First Data's merger with
Concord as inaccurate and ill-advised and vowed to vigorously defend the
transaction in court. The DOJ filed its suit earlier today in an effort to
block the transaction. First Data and Concord officials said they are
prepared to proceed quickly with the case and will ask the Court to rule on
the Justice Department's request to enjoin the deal well in advance of the
January 31, 2004 termination date in the First Data and Concord merger
agreement.
The companies intend to hold their previously scheduled shareholder
meetings on October 28.
The DOJ appears to have focused its opposition to the transaction on the
combination of the NYCE network, which is majority owned by First Data, and
the STAR network, owned by Concord. While those networks carry PIN debit
transactions at both the point-of-sale (POS) and ATMs, the DOJ's complaint is
limited to the alleged market for PIN debit services at the POS.
First Data has continuously stressed that this merger is about choice,
voice and innovation: greater choice for consumers and merchants through the
expansion of PIN debit; greater voice for merchants and banks in shaping the
developing of new products, and greater scale that will result in lower prices
and enable investment in innovation to the benefit of the payments marketplace
as a whole.
Charlie Fote, chairman and chief executive officer of First Data said,
"Today, the Department of Justice elected to decrease competition and increase
prices for consumers and merchants. The DOJ's complaint is both inaccurate
and ill-advised and could have severe detrimental impacts in the payments
marketplace. It seems that the DOJ has either misinterpreted or ignored both
rapidly changing industry dynamics as well as a common-sense interpretation of
a marketplace that clearly encompasses both PIN and signature debit. For
instance, they seem to have ignored recent wins by competitors for some of the
largest banks in the U.S.
"I find it ironic that the DOJ is acting against a transaction where the
combined company would handle less than 45% of PIN debit transactions, when
only two years ago, the DOJ approved Concord's acquisition of STAR, which
resulted in Concord handling approximately 60% of exactly the same
transactions," Fote added. "We are disappointed that the DOJ chose this
course, and rejected our offer earlier today to meet with them. We believe
the government's case is without merit, and we look forward to proving that in
court."
About First Data
First Data Corp. (NYSE: FDC), with global headquarters in Denver, helps
power the global economy. As an electronic commerce and payment services
company, First Data serves approximately 3 million merchant locations, 1,400
card issuers and millions of consumers, making it easy, fast and secure for
people and businesses to buy goods and services using virtually any form of
payment. With 29,000 employees worldwide, the company provides credit, debit,
smart card and stored-value card issuing and merchant transaction processing
services; Internet commerce solutions; money transfer services; money orders;
and check processing and verification services throughout the United States.
First Data also offers a variety of payment services in the United Kingdom,
Australia, Canada, Japan, Mexico, Spain, the Netherlands, the Middle East and
Germany. Its Western Union and Orlandi Valuta money transfer networks include
approximately 169,000 Agent locations in more than 195 countries and
territories. For more information, please visit http://www.firstdata.com .
About Concord EFS, Inc.
Concord EFS, Inc., a vertically integrated electronic transaction
processor, provides the technology and network systems that make payments and
other financial transactions faster, more efficient, and more secure than
paper-based alternatives. Concord acquires, routes, authorizes, captures, and
settles virtually all types of electronic payment and deposit access
transactions for financial institutions and merchants nationwide. Concord's
primary activities include Network Services, which provides automated teller
machine (ATM) processing, debit card processing, deposit risk management, and
STAR(SM) network access principally for financial institutions; and Payment
Services, which provides point of sale processing, settlement, and related
services, with specialized systems focusing on supermarkets, major retailers,
gas stations, convenience stores, restaurants, and trucking companies. For
more information, visit us at http://www.concordefs.com .
Not a Proxy Solicitation
This communication is not a solicitation of a proxy from any security
holder of First Data Corporation or Concord EFS, Inc. First Data and Concord
have filed with the Securities and Exchange Commission (SEC) a joint proxy
statement/prospectus concerning the planned merger of Concord with a
subsidiary of First Data. WE URGE INVESTORS TO READ THE JOINT PROXY
STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE
SEC, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors will be able
to obtain the documents free of charge at the SEC's website, http://www.sec.gov . In
addition, documents filed with the SEC by First Data will be available free of
charge from First Data Investor Relations, 6200 S. Quebec St., Suite 340,
Greenwood Village, CO 80111. Documents filed with the SEC by Concord will be
available free of charge from Concord Investor Relations, 2525 Horizon Lake
Drive, Suite 120, Memphis, TN 38133.
First Data and Concord and their respective directors and executive
officers and other members of its management and employees, may be deemed to
be participants in the solicitation of proxies from the stockholders of First
Data in connection with the planned merger. Information about the directors
and executive officers of First Data and their ownership of First Data stock
is set forth in the proxy statement for First Data's 2003 annual meeting of
stockholders. Information about the directors and executive officers of
Concord EFS, Inc. and their ownership of Concord EFS, Inc. stock is set forth
in the proxy statement for Concord EFS, Inc.'s 2003 annual meeting of
stockholders. Bond Isaacson, who became Co-Chief Executive Officer of Concord
in 2002, holds approximately 400,000 Concord stock options. Employment and
compensation agreements of certain potential participants, including change of
control arrangements, are filed as exhibits to the Concord Form 10-K filed
March 27, 2003. Executive officers of Concord may participate in a retention
bonus program that would pay bonuses in connection with the merger. Investors
may obtain additional information regarding the interests of the participants
by reading the joint proxy statement/prospectus.
FDC-1
SOURCE First Data Corp.
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Related links:
http://www.concordefs.com
http://www.firstdata.com
CONTACT:
David Banks, Investor Relations,
+1-303-967-8057, or Staci Busby, Media Relations,
+1-303-967-7188, both of First Data Corp.
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