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$25 Bil Buyout Of Sallie Mae In Jeopardy

AP   |  Marcy Gordon   |   September 26, 2007 08:50 PM

Read More: Buyouts, J.C Flowers & Co, Sallie Mae, Breaking Business News
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The planned $25 billion buyout of student lender Sallie Mae was thrown into jeopardy Wednesday after the investors said terms of the deal were no longer acceptable.

Sallie Mae, officially SLM Corp., vowed to pursue legal remedies against the investor group led by private-equity firm J.C. Flowers & Co.

The group told Sallie Mae it does not plan to complete the $60-a-share deal negotiated earlier this year, though it is open to discussing new terms.

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- missette I'm a Fan of missette permalink

Interesting. Suddenly the markets are in favor of government subsidies (i.e., welfare), and Sallie Mae can't complete unless it's allowed to bilk studuents with high interest rates. Then why does it continue to argue that private markets are more competitive than direct government lending? This article is clear evidence Sallie Mae has no intention of offering competitive loans and depends on handouts from the government (read taxpayers). Yet it does concede that lending is "robust." Sounds like a lack of leadership combined with greed is at work here. These would be more compelling reasons not to invest in Sallie Mae.

    Favorite    Flag as abusive Posted 08:12 AM on 09/27/2007
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