First Data Says Western Union Inquiry Won’t Impact Concord Deal

First Data Corp. says it does not expect an investigation by the U.S. Department of Justice of its money-transfer business to have an effect on the completion of its acquisition of Concord EFS Inc. The Denver-based processor said earlier this week it expects to close the merger with Concord Feb. 27 provided Concord shareholders approve the deal, as expected. First Data's Western Union Financial Services Inc. confirmed yesterday it is the subject of a civil anti-trust investigation by the DOJ. Although the focus of the investigation is contractual relationships between Western Union and its agents, the company maintains its contracts are in accord with “common industry norms.” The company also says it is aware that “certain states” know of the investigation and may join it or start their own. Three years ago, the Federal Trade Commission and a state investigated these issues but took no action. The DoJ action began Feb. 4 when Western Union received from the agency a so-called Civil Investigative Demand. A CID is a request for information and does not mean legal proceedings have begun.