Alliance Data shares fall on Blackstone rumor

NEW YORK (Reuters) - Shares of business services company Alliance Data (ADS.N) feel by as much as 18 percent on Thursday on market rumors that its pending buyout by Blackstone Group (BX.N) was being renegotiated at a lower price, market sources said. The shares quickly recovered.

The Alliance Data board was rumored to be meeting with Blackstone to discuss a lower price for the deal, according to a trader who did not want to be identified.

Alliance Data and Blackstone were not immediately available for comment.

In May, Blackstone agreed to buy Alliance Data for $6.76 billion, or $81.75 per share.

Alliance Data shares fell as low as $63.68 in midafternoon trade and were halted on the New York Stock Exchange at 1:31 p.m. They quickly recovered and were down 5.2 percent at $73.98 by 2 p.m.

(Reporting by Michael Flaherty; editing by John Wallace)