Alliance Data, Blackstone to work on merger's close following lawsuit dismissal

By Lisa Kerner

Charlotte, N.C., Feb. 8 - Alliance Data Systems Corp. dismissed without prejudice its lawsuit against Blackstone Group LP affiliates Aladdin Solutions, Inc. and Aladdin Merger Sub, Inc.

As previously reported, Alliance Data filed the lawsuit in the Delaware Court of Chancery to compel Blackstone to comply with its obligations under the parties' May 17, 2007 merger agreement.

Alliance Data has identified various potential solutions to approval-related issues that Blackstone considers impediments to completing the merger, prompting the lawsuit's dismissal.

Since the filing of the lawsuit, Blackstone has said it is committed to working toward the closing of the acquisition, including working with Alliance Data on proposals directed to resolving regulatory issues, an Alliance Data news release stated.

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, demanded that "extraordinary measures" be taken in connection with the change in control notice that would "represent operational and financial burdens."

Blackstone was unwilling to satisfy the OCC requirements. However, Alliance Data believed the OCC's requests were reasonable and that Blackstone could satisfy the requirements.

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

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