Magazine article American Banker

Card Firm, EDS in Dispute about 'Letter of Intent' for a Marketing Alliance

Magazine article American Banker

Card Firm, EDS in Dispute about 'Letter of Intent' for a Marketing Alliance

Article excerpt

Just as beauty is in the eye of the beholder, so is a "letter of intent" between Command Credit Corp. and Electronic Data Systems Corp. Command, a Garden City, N.Y., company that has struggled to develop credit card marketing programs, has such a letter from EDS, according to a press release it issued last week.

Command said the letter of intent calls for the two companies' "development, formation, and implementation of a business relationship." But EDS denied it had approved the contents of the release. EDS said it has only gotten into negotiations that may or may not lead to a business agreement.

"That's a total lie," said William G. Lucas, Command Credit's chairman and chief executive officer. "They had that release for four days, and our sales person confirmed that it was O.K. over the telephone. "When we said we wanted to publicize it, they said they don't ordinarily publicize letters of intent, because often they don't happen, but (that) we had their permission."

"We're in discussions with them about a possible business relationship in the future, but any disclosure about the nature of that relationship would be premature," said Craig Dees, an EDS spokesman in Plano, Tex. A copy of the document, provided by Mr. Lucas, read: "This letter confirms the intention of Command Credit Corp. and Electronic Data Systems Corp. to enter into discussions to explore the formation of a business relationship ... .

"EDS and Command intend to diligently pursue such discussions in good faith with the goal of reaching a definitive agreement regarding the formation and operation of the business relationship by Jan. …

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