Blackstone deal for ADS -- on again?

There's been quite a bit of drama with the The Blackstone Group L.P. (NYSE: BX)'s proposed $6.4 billion buyout of Alliance Data Systems Corporation (NYSE: ADS). In fact, in January, ADS filed a lawsuit against Blackstone (but it was quickly dropped).

However, things got a little easier today (according to a piece in the Wall Street Journal, which is a paid publication). That is, the Office of the Comptroller of the Currency said it will place a cap on the liability for Blackstone if ADS's credit card segment implodes (up to $400 million). Hey, in light of the turbulence in the financial markets, this is certainly a material issue and should be a relief for Blackstone.

Of course, there are still other issues, such as the credit crunch and the slowing economy. Such things make it difficult to justify a deal for ADS.

Yet, in today's trading, ADS's shares spiked 17% to $52.22. Then again, the buyout offer is still at a hefty $81.75. In other words, the Street thinks that -- if this deal gets done -- expect a much lower price.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.