DENVER - (06/09/06) First Data Corp. announcedThursday it expects to earn a $3.6-billion payout from its WesternUnion division after it spins-off the worlds leading moneytransfer operation into a separate publicly traded company laterthis year. Plans for the tax-free spin-off, detailed in a filingwith the Securities and Exchange Commission, show Western Unionwill assume $3.6 billion in debt to finance the payout to itscorporate parent. First Data said it has requested a ruling fromthe Internal Revenue Service to spin-off Western Union in atax-free distribution to shareholders, with one share of WesternUnion to be distributed for each share owned of First Data. WesternUnion reported $4 billion in revenues and $898 million in netincome for the first quarter through its 270,000 agents worldwide,including 19,000 at its recently acquired Vigo unit and 5,000 atits Orlandi Valuta subsidiary.
Western Union Delivers For FirstData
June 09, 2006, 1:00 a.m. EDT 1 Min Read
