28
01
2008
M&A update: Alliance Data Systems volatility spikes with failure of Blackstone deal
Posted by: in Raising MoneyFiled under: Options, The Blackstone Group, Raising money, Public or private?
Alliance Data Systems (NYSE: ADS) is recently at $39.00 in pre-open trading, below its close of $65.60. ADS states affiliates of The Blackstone Group (NYSE: BX) have informed ADS that they do not expect closing the merger due to problems obtaining approvals from the Office of the Comptroller of the Currency (OCC).
ADS announced on Might 17, 2007 it would be acquired for $81.75 in cash ($7.8 billion) by BX. ADS is expected to announce Q4 EPS on January 30. ADS February option implied volatility of 105 is above its 26-week average of 41 according to Track Data, suggesting bigger risk.
M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
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