The Federal Trade Commission has approved First Data Corp.'s decision to divest MoneyGram Payment Systems Inc. of Denver through an initial public offering, First Data said.

MoneyGram filed for an initial public offering in January of 27.1 million common shares. First Data would retain 13% ownership.

After First Data acquired First Financial Management Corp. last year, the FTC required the divestiture of either MoneyGram or Western Union, which was owned by First Financial.

Western Union and MoneyGram together dominate the market for money- transmission services.

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