This morning Alliance Data Systems Corp. (NYSE: ADS) issued a press release stating that it was terminating its lawsuit against The Blackstone Group LP (NYSE: BX) and its affiliates in an attempt to force the broken merger.
The company noted that since Blackstone maintains that it will seek to complete the merger that perhaps suing it isn't the best strategy. Blackstone had previously noted that it did not expect to be able to reach certain clearances and approvals in order to complete is buyout.
Just last Thursday, analysts came out to defend shares of Alliance Data after the company showed solid earnings. On that morning before analysts defended the stock, shares had been $42.70 before the analyst calls and had traded down as low as $39.54. Now today shares are up over 6% at $54.80 after being released from their share halt. More than a 25% analyst return Isn't bad at all, particularly if it is in a week. Sometimes analysts choke and sometimes they score. These guys obviously scored a win.
Alliance Data - Blackstone merger may be on again
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