Alliance Data’s $6.43 billion sale to Blackstone in trouble

Source: Exec Digital USA

Date :1/28/2008 5:49:36 AM

Blackstone notifies Alliance Data that it does not expect to win regulatory approval from the U.S. Office of the Comptroller of the Currency for their proposed $6.43 billion merger.

Alliance Data said Monday that Aladdin Solutions, Inc., an affiliate of Blackstone, had informed Alliance, a provider of transaction, credit and marketing services after the market closed on January 25.

Blackstone had agreed last May to pay $81.75 per share for Dallas-based Alliance Data.

Blackstone also said that it does not expect the regulator, the Office of the Comptroller of Currency, to consider alternative solutions that are acceptable to Blackstone, according to Alliance Data.

Blackstone notice

Alliance said that Blackstone's notice did not assert any breach of the merger agreement by the company, or what is known as the declaration a material adverse change.

It said that Blackstone’s notice reference or take issue with the financial and operational performance or liquidity of Alliance Data or its banks.

Alliance Data’s board is now evaluating its possible courses of action, the company said in its statement.

January 28, 2008