First Data Corporation is considering whether to make a rival bid for Alphyra, the electronic transactions group that is currently the subject of a management buyout (MBO).

However, the approach by the US group, which is being advised by Lehman Brothers, has been delayed because of problems over its legal representation.

It is understood that it was forced to switch legal counsel earlier this week after a possible conflict of interest arose in relation to its original advisers.

Alphyra's management team, backed by Benchmark Capital, has offered €2.45 per share for the company, valuing it at €80 million.

The team includes Alphyra chief executive Mr John Nagle, who owns 5 per cent of the company, and finance director Mr John Williamson.

The offer has been recommended by the company's two independent directors, Mr Nick Koumarianos and Mr Grant Wilkinson.

However, at the time the MBO was initiated, the company announced it had been approached by another party expressing an interest in Alphyra.

It said talks were at a very preliminary stage and there was no guarantee that the approach would result in an acceptable offer.

In November, Alphyra denied reports that First Data was poised to make a bid for it, dismissing speculation that there had been negotiations between the two companies with a view to a takeover for some months.

First Data, which is based in Denver, provides electronic commerce and payment services and owns the Western Union money transfer network.

Aside from the US market, it offers a variety of payment services in Britain, Australia, Canada, Japan, Mexico, Spain, the Netherlands, the Middle East and Germany.