On December 14th TSYS (ticker: TSS) which provides electronic payment processing and related services to financial and non-financial institutions worldwide announced an agreement to acquire a 34% equity stake in China UnionPay Data Company, the payments-processing subsidiary of China UnionPay. Earlier today management of TSYS competitor Global Payments (ticker: GPN) held a conference call to discuss its fiscal Q2 2006 earnings results. An extract from that call:
Tony Wible - Citigroup - Analyst
And what you would make of the China Union Pay equity stakes being sold to total?
Paul Garcia - Global Payments, Inc. - Chairman, President, CEO
Now China Union thing is interesting. I thought that was a very smart move for TSYS. I don't have any more details. I know what their percentage is and what it is going to increase to. But I don't see it affecting us necessarily. We do provide switching for China Union Pay today. In fact, we are having dialogues with them about other parts of the world where they believe that their China Union Pay bugged (ph) cards will accompany their Chinese citizens when they travel. So it is -- I don't see really how this would impact us at all, although my hats off to TSYS. I thought it was a good deal. Keep in mind that we do a ton of Star transactions. And we certainly compete with those guys.
Quotes are from the CCBN StreetEvents transcript.)