Blackstone Capital Partners V L.P. may have had a case of “buyer’s remorse” with its $7.8 billion deal including the assumption of certain debt of ADS. The deal valued ADS at $81.75 a share, representing a premium of about 30% over ADS’s closing price of $62.96 on 5.16.07. However, since that time ADS’s share price has fallen to $52.84 a share as of 4.18.08. ADS is alleging that Blackstone “refused to accept reasonable and customary regulatory requirements and prolonged negotiations with the OCC,” which resulted in a breach of the deal. ADS is seeking the $170 million “breakup fee” Blackstone agreed to when it entered into the deal with ADS on 5.17.07. The deal was expected to close by year-end 2007, however, due to lack of liquidity at Blackstone, the deal was delayed for a second time and ADS is suing Blackstone for “breach of contract.” The deal was touted as a marriage amongst a leader in card processing with Blackstone’s investment expertise would create a powerful partnership.