Western Union

The Justice Department has opened a civil antitrust investigation of Western Union Financial Services, the money-transfer subsidiary of First Data Corp. The government has demanded information about contracts between Western Union, which runs the world's largest consumer money transfer network, and its independent agents, First Data said. Denver-based First Data said Western Union's contract practices "reflect common industry norms." First Data rose 38 cents to $38.88 on the NYSE.

Western Union Corp. will lay off about 1,800 workers, some 25% of its work force, by the end of this year, the company said Tuesday. The layoffs will affect workers in all parts of the company, spokesman Warren Bechtel said.

Western Union warned thousands of online customers that hackers had broken into the money transferring company's Web site. It was unclear whether the hackers obtained any personal account information. No fraudulent transactions had been reported by late Saturday, said Peter Ziverts, spokesman of the Englewood, Colo.-based company. Only customers who conducted online transactions would have been affected. The problem was discovered during a routine security check Friday, he said.

The company said that 31 lending banks have agreed to defer about $15 million of interest on existing loans through the first quarter of 1985. The banks also made an additional loan of $12 million, due March 28, to the firm's principal subsidiary, Western Union Telegraph Co. As part of the agreement, Western Union Corp. will issue the banks warrants to purchase 500,000 shares of common stock and, under certain circumstances, warrants to buy an additional 250,000 shares in April.

Western Union Corp. said Thursday that it had closed the polls for a thrice-delayed shareholder vote on a vital part of the telecommunication concern's restructuring plan, which company officials consider necessary to financial good health. A shareholder meeting for balloting also was adjourned for the corporation's chief subsidiary, Western Union Telegraph. Spokesman Don Dutcher said the shareholder meeting will be reconvened Monday to announce the results of the balloting.

Western Union Corp. withdrew its restructuring plan Friday after shareholders rejected two parts of it and announced a proposed $250-million investment by two companies that would gain control of the telecommunications giant. The beleaguered company said Pacific Asset Holdings L.P., a private financial services organization in Los Angeles, and MDC Holdings Inc.

Western Union Co., seeking to avoid bankruptcy court, said today it has filed a restructuring plan based on swapping $530 million in notes for new securities with lower rates and a longer repayment schedule. The filing with the Securities and Exchange Commission comes as the company faces a June 15 deadline to make a $51-million biannual interest payment.

The company said it plans to record special charges of about $300 million against fourth-quarter earnings of last year, and it expects to report a net loss of about $370 million for all of 1985. The charges are primarily for the write-down of older switching and transmission equipment. Company officials said that details of the fourth quarter and 1985 results will be announced in about two weeks. Western Union has not posted an annual profit since 1982.

Western Union Corp. hopes that its expected bankruptcy filing later this year won't tarnish its good name. Therefore, it's changing its name. Thursday, the 140-year-old company that gave the United States its first coast-to-coast communications wire line link became New Valley Corp. The change was sought by directors of the debt-laden company so as not to sully the Western Union name if the company files for bankruptcy protection in June, when a $42.2-million debt payment is due.

The beleaguered New Jersey-based communications company rejected an offer by Resource Holding Ltd. for a $300-million cash infusion in exchange for a 33% stake in the company. Resource is an investment company partially owned by the Pritzker family of Chicago.