Photo: Reuters/Bobby Yip

Speaking with the Financial Times, MoneyGram chief executive Alex Holmes said Euronet’s claims that Chinese buyer Ant Financial posed a national security risk is “simply untrue.”

The Chinese firm, an Alibaba subsidiary, first signed a US$880 million deal to acquire the US money transfer company, but has since been outbid by Kansas-based Euronet with a US$940 million offer.

MoneyGram did not back out of the original deal, despite the higher offer, although they have agreed to hold talks with the rival bidder.

Euronet initiated a lobbying campaign in Washington following their bid, arguing that the Chinese firm’s takeover poses a national security risk.