By Rory Gallivan
LONDON--Shares in Monitise PLC (MONI.LN) slumped after the U.K.
mobile banking technology company said payment cards company Visa
Europe plans to reduce its 5.3% stake in the firm, the latest blow
for the former darling of the U.K. technology scene.
Visa Europe "will reduce its shareholding over time while
continuing to work with the company throughout the duration of its
current commercial agreement," Monitise said.
The agreement, which involves Monitise helping Visa Europe
develop payments and shopping services for mobile devices, runs
until March 31.
Visa Europe's decision mirrors a similar one taken last year by
Visa Inc. (V), a separate U.S.-based entity, which prompted a sharp
fall in Monitise's share price.
The company has also downgraded its revenue expectations several
times and is now well short of the valuation above 1 billion pounds
($1.56 billion) it sat at last year.
Shares at 0741 GMT were down 2 pence, or 16%, at 8 pence valuing
the company at 180.6 million pounds ( ).
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-Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter:
@RoryGallivan
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