http://money.cnn.com/2007/01/10/news/co ... ail_alerts

Western Union wins money transfer court fight
Arizona court says the state cannot seize money transfers sent from the United States to Mexico, sending shares higher.
January 10 2007: 12:33 PM EST


NEW YORK (Reuters) -- An Arizona court ruled that the state attorney general does not have the authority to seize Western Union Co. money transfers sent from other U.S. states to Mexico, the company said Wednesday.

The ruling is a victory for the world's largest money transfer company, which said last year that the U.S. immigration debate was weighing on its results.

Western Union (up $0.35 to $22.60, Charts) shares rose 2 percent in morning trading, on the New York Stock Exchange.

The company, spun off from First Data Corp. (down $0.27 to $25.56, Charts) last year, said in several filings in 2006 that it did not expect the Arizona attorney general's moves to have any material impact on its earnings.

Cashing in on immigration
But concerns about immigrants being targeted likely cut into money transfer volume between the United States and Mexico, said Craig Maurer, an analyst at Soleil Securities in New York.

"The resolution of this issue should go a long way in bringing those customers back into the fold," Maurer said, adding that it could help results in the first quarter.

Arizona Attorney General Terry Goddard had sought to seize money transfers made from 26 states for payment in Mexico, and demanded senders of the funds contact Arizona authorities to prove the funds were legally obtained, Western Union said.

Goddard spokeswoman Andrea Esquer declined comment on the ruling, saying his office was still reviewing it.

First Data, then Western Union's parent, said last July that the money transfer business's full-year earnings growth would be stunted by the debate on immigration in the United States.

Legal and illegal residents became reluctant to attract government attention by transferring money, the company said.