Filed under: Private equity, Blackstone Group L.P (BX)

Back on May 17, 2007, there was another typical multi-billion dollar private equity deal. That is, The Blackstone Group L.P. (NYSE: BX) agreed to pay $81.75 per share — a total of $7.8 billion — for Alliance Data Systems Corporation (NYSE: ADS).

In the press release, Chip Schorr, a Senior Managing Director at Blackstone, proclaimed: “We are excited about the opportunity to work together with management and with Alliance Data’s dedicated employees to help continue to grow the business and further strengthen the company’s competitive position.”

Well, now the deal is in shambles, with ADS’s stock price trading at a lowly $41.40. This week, Blackstone indicated that it is having troubles getting regulatory approval from the Office of the Comptroller of Currency (OCC), which wants Blackstone to provide a $400 million backstop of support (in the event there is a problem with the banking segment).

Continue reading Blackstone gets served

Permalink | Email this | Comments

Share This

This entry was posted on Wednesday, January 30th, 2008 at 5:39 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.