Alliance Data denies rumors related to deal with Blackstone Group

By Lisa Kerner

Charlotte, N.C., Jan. 17 - Alliance Data Systems Corp. once again addressed market rumors about its agreement with a Blackstone Group affiliate as well as its "unusual market activity" in the company's stock.

The company reiterated that:

• No discussions with regard to a renegotiation of the previously announced transaction are taking place between Blackstone and the special committee of Alliance Data's board of directors formed in connection with the transactions contemplated by the merger agreement;

• Alliance Data believes the transaction financing remains fully committed by the banking group;

• Alliance Data, Blackstone and their representatives continue to work with bank regulatory agencies to obtain approvals;

• The company stands behind the guidance given in a Dec. 17 press release; and

• Fourth-quarter 2007 earnings will be announced on Jan. 30.

Alliance Data and Blackstone are continuing to work together to close the deal "as quickly as possible," according to a company news release.

On Nov. 29, Alliance Data said that despite market rumors to the contrary, the company has not been approached by Blackstone Capital Partners V LP or its affiliates to renegotiate the offer for Alliance Data.

Under the terms of the May 17, 2007 merger agreement, Blackstone will acquire all of the outstanding common stock of Alliance Data for $81.75 per share in cash in a deal valued at some $7.8 billion.

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

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