Alliance Data files suit against Blackstone in attempt to restart stalled merger

By Lisa Kerner

Charlotte, N.C., Jan. 30 - Alliance Data Systems Corp. filed a lawsuit against Blackstone Group affiliates in the Delaware Court of Chancery to compel Blackstone to comply with its obligations under the parties' May 17, 2007 merger agreement.

Aladdin Solutions, Inc. (formerly Aladdin Holdco, Inc.) and Aladdin Merger Sub, Inc. are the acquisition entities formed by affiliates of Blackstone to acquire Alliance Data.

Specifically, the lawsuit seeks to have Blackstone comply with its obligations to obtain required regulatory approvals and to consummate the merger, according to an Alliance Data news release.

On Jan. 25, Blackstone notified Alliance Data that it did not believe approval from the Office of the Comptroller of the Currency would be obtained. The approval is a condition of the merger.

The OCC, according to Blackstone, is demanding that "extraordinary measures" be taken in connection with the change in control notice that would "represent operational and financial burdens."

Blackstone is unwilling to satisfy the OCC requirements. However, Alliance Data believes the OCC's requests are reasonable and that Blackstone is able to satisfy the requirements.

Alliance Data is represented by Akin Gump Strauss Hauer & Feld LLP and Prickett, Jones & Elliott, PA in the litigation.

Dallas-based Alliance Data provides marketing, loyalty and transaction services.

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