Wednesday, July 11, 2007
NEW YORK, Jul. 11, 2007 (AP Online delivered by Newstex) -- A planned $25 billion buyout of the nation's largest student loan lender, Sallie Mae (NYSE:SLM PRB) (NYSE:SLM PRA) (NYSE:SLM) , could fail because of legislation pending in Congress, the potential buyers have said.
SLM Corp. (NYSE:ISM) (NYSE:OSM) (NYSE:JSM) , more commonly know as Sallie Mae, said in a statement Wednesday that it disagreed with the investment group's assertion. The group is headed by J.C. Flowers and includes Bank of America Corp. (NYSE:BAC PRZ) (NYSE:BAC PRA) (NYSE:IKR) (NYSE:IKM) (NYSE:IKL) (NYSE:IKJ) (NYSE:BAC) and JPMorgan Chase (NYSE:JPM PRH) (NYSE:JPM PRX) (NYSE:JPM PRK) (NYSE:JPM PRJ) (NYSE:JPT) (NYSE:JPM) & Co.
SLM said it would proceed with the deal as swiftly as possible to protect its investors.
Sallie Mae shares fell more than 14 percent before being halted.
Under the terms of the buyout, which was announced in April, Sallie Mae would sell itself to the group for $60 per share.
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