By Soyoung Kim and Greg Roumeliotis and Jessica Toonkel
(Reuters) - MoneyGram International Inc
The world's second-largest money transfer company was in final-stage discussions with Carlyle Group LP
The sources requested anonymity because the talks about a sale were confidential. MoneyGram representatives did not respond to requests for comment while Carlyle declined to comment.
MoneyGram shares dropped as much as 11 percent on the news and were trading down 3 percent at $18.99 in late afternoon trading in New York, giving the company a market value of around $1.1 billion.
With 327,000 locations in retailers, post offices and banks in nearly 200 countries and territories, MoneyGram is second only to Western Union Co
Bank of America Corp
MoneyGram started as a small money order company in Minneapolis in 1940 and now boasts more than twice the locations of McDonald's Corp
The Dallas-based company faced a serious liquidity crunch in 2008 after investing in subprime and other risky asset-backed securities, but it was rescued through a $1.5 billion equity and debt deal clinched with Goldman Sachs Group Inc
MoneyGram staged a comeback and in 2012 reported record sales of $1.34 billion, but its profits suffered as a result of legal expenses incurred in consumer fraud cases involving its agents.
(Reporting by Soyoung Kim, Greg Roumeliotis and Jessica Toonkel in New York; Editing by Bernard Orr)