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NEW VALLEY SUES TO STOP FIRST DATA INTERFERENCE

 UPPER SADDLE RIVER, N.J., May 5 /PRNewswire/ -- New Valley Corporation (NYSE: NVL) today asked the U.S. Bankruptcy Court in Newark, N.J., to enjoin First Data Corporation (NYSE: FDC) from wrongful interference in its Chapter 11 reorganization. New Valley has been under the protection of Chapter 11 since it consented to the entry of an order for relief on March 31, 1993.
 Through its wholly owned subsidiary, Western Union Financial Services, Inc. (FSI), which is not included in the Chapter 11 proceeding, New Valley provides a growing, profitable consumer money transfer service throughout North America and much of the world. First Data offers a competing money transfer service.
 New Valley said its complaint seeks permanent injunctive relief from the unlawful, below-cost money transfer pricing that First Data initiated in April -- shortly after New Valley entered Chapter 11. This pricing, which is accompanied by heavy advertising support, is designed to critically injure New Valley's primary business at a time when the company is trying to reorganize in a contested bankruptcy proceeding, according to New Valley.
 In its filing, New Valley also informed the court of other First Data actions that it said constitute wrongful interference with its reorganization. These include covert discussions with several of New Valley's major creditors and a spurious proposal to purchase selected assets employed in the operation of FSI's money transfer business.
 In a separate action, Western Union Financial Services today filed suit against First Data Corporation in California State Court in Los Angeles. FSI is requesting a temporary restraining order for the immediate discontinuance of First Data's illegal pricing scheme.
 -0- 5/5/93
 /CONTACT: Warren Bechtel of New Valley, 201-818-5790 or 212-868-8888/
 (NVL FDC)


CO: New Valley Corporation; First Data Corporation ST: New Jersey IN: SU:

GK -- NY080 -- 5005 05/05/93 15:49 EDT
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Publication:PR Newswire
Date:May 5, 1993
Words:302
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