UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 2)*
MONEYGRAM INTERNATIONAL, INC.
-----------------
(Name of Issuer)
Common Stock, Par Value $0.01 Per Share
-----------------------------
(Title of Class of Securities)
60935Y109
---------
(CUSIP Number)
Gregory D. Hitchan
Blum Capital Partners, L.P.
909 Montgomery Street, Suite 400
San Francisco, CA 94133
(415) 434-1111
--------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
December 17, 2007
-----------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition that is the subject of this Schedule 13D, and is filing
this schedule because of Section 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g),
check the following box [ ].
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Section 240.13d-7 for
other parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities,
and for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
Page 1 of 15
* * * * * * *
CUSIP NO. 60935Y109 SCHEDULE 13D Page 2 of 15
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1. NAME OF REPORTING PERSON BLUM CAPITAL PARTNERS, L.P.
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) 94-3205364
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS* See Item 3
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
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6. CITIZENSHIP OR PLACE OF ORGANIZATION California
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7. SOLE VOTING POWER -0-
NUMBER OF ----------------------------------------------------------
SHARES 8. SHARED VOTING POWER 8,170,000**
BENEFICIALLY
OWNED BY EACH ----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 8,170,000**
-----------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 8,170,000**
-----------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.9%**
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14. TYPE OF REPORTING PERSON PN, IA
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** See Item 5
* * * * * * *
CUSIP NO. 60935Y109 SCHEDULE 13D Page 3 of 15
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1. NAME OF REPORTING PERSON RICHARD C. BLUM & ASSOCIATES, INC.
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) 94-2967812
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
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3. SEC USE ONLY
-----------------------------------------------------------------------------
4. SOURCE OF FUNDS* See Item 3
-----------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
-----------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION California
-----------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF ----------------------------------------------------------
SHARES 8. SHARED VOTING POWER 8,170,000**
BENEFICIALLY
OWNED BY EACH ----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 8,170,000**
-----------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 8,170,000**
-----------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
-----------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.9%**
-----------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON CO
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** See Item 5
* * * * * * *
CUSIP NO. 60935Y109 SCHEDULE 13D Page 4 of 15
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1. NAME OF REPORTING PERSON BLUM STRATEGIC GP III, L.L.C.
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) 04-3809436
-----------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
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3. SEC USE ONLY
-----------------------------------------------------------------------------
4. SOURCE OF FUNDS* See Item 3
-----------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
-----------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware
-----------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF ----------------------------------------------------------
SHARES 8. SHARED VOTING POWER 8,170,000**
BENEFICIALLY
OWNED BY EACH ----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 8,170,000**
-----------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 8,170,000**
-----------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
-----------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.9%**
-----------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON OO (Limited Liability Company)
-----------------------------------------------------------------------------
** See Item 5
* * * * * * *
CUSIP NO. 60935Y109 SCHEDULE 13D Page 5 of 15
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1. NAME OF REPORTING PERSON BLUM STRATEGIC GP III, L.P.
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) 02-0742606
-----------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
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3. SEC USE ONLY
-----------------------------------------------------------------------------
4. SOURCE OF FUNDS* See Item 3
-----------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
-----------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware
-----------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF ----------------------------------------------------------
SHARES 8. SHARED VOTING POWER 8,170,000**
BENEFICIALLY
OWNED BY EACH ----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 8,170,000**
-----------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 8,170,000**
-----------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
-----------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.9%**
-----------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON PN
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** See Item 5
* * * * * * *
CUSIP NO. 60935Y109 SCHEDULE 13D Page 6 of 15
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1. NAME OF REPORTING PERSON BLUM STRATEGIC PARTNERS III, L.P.
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY) 04-3809438
-----------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
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3. SEC USE ONLY
-----------------------------------------------------------------------------
4. SOURCE OF FUNDS* See Item 3
-----------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
-----------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware
-----------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF ----------------------------------------------------------
SHARES 8. SHARED VOTING POWER 8,170,000**
BENEFICIALLY
OWNED BY EACH ----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 8,170,000**
-----------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 8,170,000**
-----------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
-----------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.9%**
-----------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON PN
-----------------------------------------------------------------------------
** See Item 5
* * * * * * *
CUSIP NO. 60935Y109 SCHEDULE 13D Page 7 of 15
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1. NAME OF REPORTING PERSON BLUM STRATEGIC GP IV, L.L.C.
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) 26-0588693
-----------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
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3. SEC USE ONLY
-----------------------------------------------------------------------------
4. SOURCE OF FUNDS* See Item 3
-----------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
-----------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware
-----------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF ----------------------------------------------------------
SHARES 8. SHARED VOTING POWER 8,170,000**
BENEFICIALLY
OWNED BY EACH ----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 8,170,000**
-----------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 8,170,000**
-----------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
-----------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.9%**
-----------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON OO (Limited Liability Company)
-----------------------------------------------------------------------------
** See Item 5
* * * * * * *
CUSIP NO. 60935Y109 SCHEDULE 13D Page 8 of 15
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1. NAME OF REPORTING PERSON BLUM STRATEGIC GP IV, L.P.
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) 26-0588732
-----------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
-----------------------------------------------------------------------------
3. SEC USE ONLY
-----------------------------------------------------------------------------
4. SOURCE OF FUNDS* See Item 3
-----------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
-----------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware
-----------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF ----------------------------------------------------------
SHARES 8. SHARED VOTING POWER 8,170,000**
BENEFICIALLY
OWNED BY EACH ----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 8,170,000**
-----------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 8,170,000**
-----------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
-----------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.9%**
-----------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON PN
-----------------------------------------------------------------------------
** See Item 5
* * * * * * *
CUSIP NO. 60935Y109 SCHEDULE 13D Page 9 of 15
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1. NAME OF REPORTING PERSON SADDLEPOINT PARTNERS GP, L.L.C.
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) 83-0424234
-----------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
-----------------------------------------------------------------------------
3. SEC USE ONLY
-----------------------------------------------------------------------------
4. SOURCE OF FUNDS* See Item 3
-----------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
-----------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware
-----------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF ----------------------------------------------------------
SHARES 8. SHARED VOTING POWER 8,170,000**
BENEFICIALLY
OWNED BY EACH ----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 8,170,000**
-----------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 8,170,000**
-----------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
-----------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.9%**
-----------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON OO (Limited Liability Company)
-----------------------------------------------------------------------------
** See Item 5
* * * * * * *
CUSIP NO. 60935Y109 SCHEDULE 13D Page 10 of 15
Item 1. Security and Issuer
-----------------------------
This Amendment No. 2 amends the Statement on Schedule 13D (the "Schedule
13D") filed with the Securities and Exchange Commission (the "Commission")
on December 6, 2007 by Blum Capital Partners, L.P., a California limited
partnership, ("Blum LP"); Richard C. Blum & Associates, Inc., a California
corporation ("RCBA Inc."); Blum Strategic GP III, L.L.C., a Delaware
limited liability company ("Blum GP III"); Blum Strategic GP III, L.P., a
Delaware limited partnership ("Blum GP III LP"); Blum Strategic Partners III,
L.P., a Delaware limited partnership ("Blum Strategic III"; Blum Strategic GP
IV, L.L.C., a Delaware limited liability company ("Blum GP IV"); Blum Strategic
GP IV, L.P., a Delaware limited partnership ("Blum GP IV LP"); and Saddlepoint
Partners GP, L.L.C., a Delaware limited liability company ("Saddlepoint GP")
(collectively, the "Reporting Persons").
This Amendment No. 2 relates to shares of common stock, $0.01 par value per
share (the "Common Stock") of Moneygram International, Inc., a Delaware
corporation (the "Issuer"). The principal executive office and mailing address
of the Issuer is 1550 Utica Avenue South, Minneapolis, MN 55416.
The following amendments to the Schedule 13D are hereby made by this
Amendment No. 2. Unless otherwise defined herein, all capitalized terms shall
have the meanings ascribed to them in the Schedule 13D as previously amended.
Item 2. Identity and Background
---------------------------------
There have been no changes to Item 2 since the last filed Schedule 13D on
December 6, 2007.
Item 3. Source and Amount of Funds or Other Considerations
------------------------------------------------------------
There have been no changes to Item 3 since the last filed Schedule 13D on
December 6, 2007.
* * * * * * *
CUSIP NO. 60935Y109 SCHEDULE 13D Page 11 of 15
Item 4. Purpose of Transaction
--------------------------------
Item 4 is hereby amended and restated in its entirety with the following:
The purpose of the acquisition of the Common Stock is for investment, and the
acquisitions of the Common Stock were made in the ordinary course of business
and were not made for the purpose of acquiring control of the Issuer.
Although no Reporting Person has any specific plan or proposal to acquire or
dispose of the Common Stock, consistent with its investment purpose, each
Reporting Person at any time and from time to time may acquire additional
Common Stock or dispose of any or all of its Common Stock depending upon an
ongoing evaluation of the investment in the Common Stock, prevailing market
conditions, other investment opportunities, liquidity requirements of the
Reporting Persons and/or other investment considerations.
Also, consistent with the investment purpose, the Reporting Persons may engage
in communications with one or more shareholders of the Issuer, one or more
officers of the Issuer and/or one or more members of the board of directors of
the Issuer and/or one or more representatives of the Issuer regarding the
Issuer, including but not limited to its operations. The Reporting Persons
may discuss ideas that, if effected may result in any of the following: the
acquisition by persons of additional Common Stock of the Issuer, an
extraordinary corporate transaction involving the Issuer, and/or changes in
the board of directors or management of the Issuer.
On December 17, 2007, Blum L.P. sent a letter to the Issuer and the Board of
Directors of the Issuer (the "Blum Letter"). The Blum Letter is attached
hereto as Exhibit B, and is incorporated by reference herein in its entirety.
Except to the extent the foregoing may be deemed a plan or proposal, none of
the Reporting Persons has any plans or proposals which relate to, or could
result in, any of the matters referred to in paragraphs (a) through (j),
inclusive, of the instructions to Item 4 of Schedule 13D. The Reporting
Persons may, at any time and from time to time, review or reconsider their
position and/or change their purpose and/or formulate plans or proposals with
respect thereto.
* * * * * * *
CUSIP NO. 60935Y109 SCHEDULE 13D Page 12 of 15
Item 5. Interest in Securities of the Issuer
----------------------------------------------
(a), (b) According to the Issuer's Form 10-Q filed with the Securities and
Exchange Commission on November 7, 2007, there were 82,647,173 shares of
Common Stock issued and outstanding as of November 2, 2007. Based on such
information, after taking into account the transactions described in Item 5(c)
below, the Reporting Persons report beneficial ownership of the following
shares of Common Stock: (i) 1,898,600 shares of Common Stock held by Blum LP
and RCBA Inc. on behalf of the limited partnerships for which Blum LP serves
as the general partner, which represents 2.3% of the outstanding shares of the
Common Stock; (ii) 4,837,400 shares of the Common Stock held by Blum GP III
which serves as general partner of Blum GP III LP which, in turn, serves as
the general partner of Blum Strategic III, which represents 5.9% of the
outstanding shares of the Common Stock; (iii) 1,024,000 shares of the Common
Stock held by Blum GP IV, which serves as general partner of Blum GP IV LP
which, in turn, serves as the general partner of Blum Strategic IV, which
represents 1.2% of the outstanding shares of the Common Stock; (iv)180,000
shares of the Common Stock held by Saddlepoint GP on behalf of a partnership
for which it serves as the general partner, which represents 0.2% of the
outstanding shares of the Common Stock; and (v) 115,000 shares of the Common
Stock that are legally owned by The Nuclear Decommissioning Trust of Dominion
Nuclear Connecticut, Inc. ("Dominion Connecticut"), which represents 0.1% of
the outstanding shares of the Common Stock and 115,000 shares of the Common
Stock that are legally owned by Virginia Electric and Power Company Qualified
Nuclear Decommissioning Trust ("Virginia Electric"), which represents 0.1% of
the outstanding shares of the Common Stock (collectively, the "Investment
Advisory Clients"), with respect to which Blum LP has voting and investment
power. Each Investment Advisory Client has entered into an investment
management agreement with Blum LP, but neither Investment Advisory Client has
any contract, arrangement or understanding with the other Investment Advisory
Client, or any other Reporting Person, with respect to the acquisition,
ownership, disposition or voting of any shares of the Common Stock. Each
Investment Advisory Client disclaims membership in a group with any Reporting
Person or with the other Investment Advisory Client, and each disclaims
beneficial ownership of any shares beneficially owned by the Reporting Persons
other than for their own account.
* * * * * * *
CUSIP NO. 60935Y109 SCHEDULE 13D Page 13 of 15
Voting and investment power concerning the above shares are held solely by Blum
LP, Blum GP III, Blum GP IV and Saddlepoint GP. The Reporting Persons
therefore may be deemed to be members in a group, in which case the group would
be deemed to have beneficial ownership of an aggregate of 8,170,000 shares of
the Common Stock, which is 9.9% of the outstanding Common Stock. As the sole
general partner of Blum LP, RCBA Inc. is deemed the beneficial owner of the
securities over which Blum LP has voting and investment power. The filing of
this Schedule shall not be construed as an admission that any of the
shareholders, directors or executive officers of RCBA Inc. or the managing
members and members of Blum GP III, Blum GP III LP, Blum GP IV, Blum GP IV LP,
and Saddlepoint GP, is, for any purpose, the beneficial owner of any of the
securities that are beneficially owned by RCBA Inc., Blum GP III LP, Blum GP
III, Blum GP IV, Blum GP IV LP or Saddlepoint GP.
c) The Reporting Persons effected the following transactions in the Common
Stock since the last filed Schedule 13D on December 6, 2007:
The Reporting Persons purchased the following number of shares of Common Stock
in the open market:
Entity Trade Date Shares Price/Share
------- ---------- -------- -----------
For Blum Strategic IV for 12-14-2007 60,000 16.5495
which Blum GP IV LP 12-13-2007 100,000 16.9224
serves as the general partner 12-13-2007 331,200 16.9948
and for Blum GP IV which
serves as the general
partner for Blum GP IV LP.
(d) Not applicable.
(e) Not applicable.
* * * * * * *
CUSIP NO. 60935Y109 SCHEDULE 13D Page 14 of 15
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect
to Securities of the Issuer
-----------------------------------------------------------------------------
There have been no changes to Item 6 since the initial Schedule 13D filed on
November 19, 2007.
Item 7. Material to be Filed as Exhibits
------------------------------------------
Exhibit A - Joint Filing Undertaking
Exhibit B - Blum Letter dated December 17, 2007
* * * * * * *
CUSIP NO. 60935Y109 SCHEDULE 13D Page 15 of 15
SIGNATURES
After reasonable inquiry and to the best of our knowledge and belief, the
undersigned certify that the information set forth in this statement is true,
complete and correct.
Dated: December 18, 2007
RICHARD C. BLUM & ASSOCIATES, INC. BLUM CAPITAL PARTNERS, L.P.
By: Richard C. Blum & Associates, Inc.
its General Partner
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
------------------------------- ----------------------------------
Gregory D. Hitchan Gregory D. Hitchan
Partner, Chief Operating Officer, Partner, Chief Operating Officer,
General Counsel and Secretary General Counsel and Secretary
BLUM STRATEGIC GP III, L.L.C. BLUM STRATEGIC GP III, L.P.
By: Blum Strategic GP III, L.L.C.
its General Partner
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
-------------------------------- ----------------------------------
Gregory D. Hitchan Gregory D. Hitchan
Managing Member Managing Member
BLUM STRATEGIC PARTNERS III, L.P. BLUM STRATEGIC GP IV, L.L.C.
By: Blum Strategic GP III, L.P.,
its General Partner
By: Blum Strategic GP III, L.L.C.
its General Partner
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
--------------------------- ------------------------------
Gregory D. Hitchan, Gregory D. Hitchan
Managing Member Managing Member
BLUM STRATEGIC GP IV, L.P. SADDLEPOINT PARTNERS GP, L.L.C.
By: Blum Strategic GP IV, L.L.C. By: Blum Capital Partners, L.P.
its General Partner its Managing Member
By: Richard C. Blum & Associates, Inc.
its General Partner
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
---------------------------- -------------------------------
Gregory D. Hithcan, Gregory D. Hitchan
Managing Member Partner, Chief Operating Officer,
General Counsel and Secretary
* * * * * * *
CUSIP NO. 60935Y109 SCHEDULE 13D Page 1 of 1
Exhibit A
JOINT FILING UNDERTAKING
The undersigned, being duly authorized thereunto, hereby execute this
agreement as an exhibit to this Schedule 13D to evidence the agreement of the
below-named parties, in accordance with the rules promulgated pursuant to the
Securities Exchange Act of 1934, to file this Schedule jointly on behalf of
each such party.
Dated: December 18, 2007
RICHARD C. BLUM & ASSOCIATES, INC. BLUM CAPITAL PARTNERS, L.P.
By: Richard C. Blum & Associates, Inc.
its General Partner
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
------------------------------- ----------------------------------
Gregory D. Hitchan Gregory D. Hitchan
Partner, Chief Operating Officer, Partner, Chief Operating Officer,
General Counsel and Secretary General Counsel and Secretary
BLUM STRATEGIC GP III, L.L.C. BLUM STRATEGIC GP III, L.P.
By: Blum Strategic GP III, L.L.C.
its General Partner
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
-------------------------------- ----------------------------------
Gregory D. Hitchan Gregory D. Hitchan
Managing Member Managing Member
BLUM STRATEGIC PARTNERS III, L.P. BLUM STRATEGIC GP IV, L.L.C.
By: Blum Strategic GP III, L.P.,
its General Partner
By: Blum Strategic GP III, L.L.C.
its General Partner
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
--------------------------- ------------------------------
Gregory D. Hitchan, Gregory D. Hitchan
Managing Member Managing Member
BLUM STRATEGIC GP IV, L.P. SADDLEPOINT PARTNERS GP, L.L.C.
By: Blum Strategic GP IV, L.L.C. By: Blum Capital Partners, L.P.
its General Partner its Managing Member
By: Richard C. Blum & Associates, Inc.
its General Partner
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
---------------------------- -------------------------------
Gregory D. Hitchan, Gregory D. Hitchan
Managing Member Partner, Chief Operating Officer,
General Counsel and Secretary
* * * * * * *
CUSIP NO. 60935Y109 SCHEDULE 13D Page 1 of 2
Exhibit B
December 17, 2007
Mr. Philip W. Milne
Chairman, President, and Chief Executive Officer
MoneyGram International, Inc.
1550 Utica Avenue South, Suite 100
Minneapolis, MN, 55416
Dear Philip,
As you know from our previous conversations, Blum Capital Partners, L.P. is a
San Francisco based investment firm specializing in both public strategic block
and private equity investments with the goal of working with management and the
board of directors to maximize value for all shareholders. Our approach
inherently calls for a much longer time horizon than most other investors, and
we consider our ability to invest within a multi-year framework a significant
strategic advantage when partnering with operating executives and board members
of our portfolio companies.
As of December 17, 2007, Blum Capital Partners owns 8,170,000 shares of
MoneyGram. We purchased these shares from October 23 through December 14, 2007
and our position represents approximately 9.8% of the company. We believe that
the core money transfer operation of MoneyGram is a high quality business with
attractive rates of return on invested capital, prodigious cash flow
generation, and favorable long-term secular growth. However, against that
positive backdrop there are recent concerns that have compelled us to express
our thoughts regarding appropriate action in order to serve the best interests
of all constituents.
First, we have been troubled by the lack of disclosure and transparency
surrounding the investment portfolio of MoneyGram. We believe it is quite clear
that concerns centered around the asset quality and risk profile of the
portfolio have led to a substantial recent diminution of value for MoneyGram
shareholders. We also find it disturbing that management would allow any non-
core asset, such as the investment portfolio, to jeopardize potentially the
entire enterprise. We have heard assurances from you that, if left to
realization to maturity, many assets within the portfolio will be "money good".
However, at the same time, you have been loath to provide all shareholders
transparency for most of these assets, essentially leaving owners of the
business with minimal data to make well informed judgments regarding the most
significant challenge facing the company today. We implore you to provide a
thorough, detailed disclosure of the
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CUSIP NO. 60935Y109 SCHEDULE 13D Page 2 of 2
Mr. Philip W. Milne
MoneyGram International, Inc.
December 17, 2007
Page two
entire portfolio and the full extent of its challenges in an expeditious manner
as that information should be eminently available. We strongly feel that such
disclosure is prudent, given the current circumstances, and best serves
shareholders' interests.
Second, regarding the current proposal from Euronet to acquire MoneyGram, we
believe the MoneyGram Board of Directors has a fiduciary duty to maximize
shareholder value. We do not make this statement lightly, having served on
numerous boards ourselves and being cognizant of all the requisite obligations
to fulfill that sole objective. Thus, we speak from experience in stating that
the onerous restriction of a standstill agreement is antithetical to the goal
of shareholder value maximization during a proposed negotiation process. To
obtain the fullest possible value for MoneyGram shareholders, we believe both
parties must be willing to engage in a good faith manner. Your proposal in
response to the Euronet offer eliminates that possibility and therefore acts
counter to the stated objective of any corporate board: to offer shareholders
the best possible outcome. For the time being, we will reserve judgment on the
Euronet proposed transaction because we feel it is incumbent upon the MoneyGram
Board to negotiate in good faith with Euronet to reach a definitive conclusion
on the comparative value proposition to shareholders. Should the facts warrant
it, we would be quite satisfied with the prospect of MoneyGram as a stand-alone
company that continues to compound shareholder wealth over a long period of
time. However, until you begin an earnest process with the management and Board
of Euronet we will not know which alternative is truly best for shareholders.
Therefore, we strongly encourage you to remove the restrictive standstill
agreement and enter into discussions with Euronet to secure the best possible
value for MoneyGram shareholders. Ultimately, the decision to sell MoneyGram or
continue as an ongoing concern is not your decision; it is not the Board's
decision; it is the shareholders' decision.
We respectfully request a formal response from the company no later than
Friday, December 21, 2007.
Sincerely,
Gregory L. Jackson
Partner
cc: Board of Directors, MoneyGram