Skip to: Content
Skip to: Site Navigation
Skip to: Search

December 2, 2008 5:17:55 AM CST

Learn about Newser Points »

« Back to the grid | Next story »

Sallie Mae Drops $900M Lawsuit

Posted Jan 29, 08 9:31 AM CST in Business 

(Newser) – Beleaguered student loan provider Sallie Mae yesterday dropped its $900 million lawsuit against the onetime suitors who bailed on a $25.3 billion buyout after the credit crunch caused would-be investors to walk away, reports the Washington Post. By agreeing not to seek the penalty from investment firm JC Flowers and several partners, Sallie Mae secured $31 billion in financing.

In April, Flowers, Bank of America and JP Morgan negotiated to buy Sallie Mae for $60 a share, a premium of nearly 50%. The summer’s subprime crisis prompted the buyers to renege, sending Sallie Mae’s shares into freefall and setting off a bitter personal battle between Sallie Mae CEO Albert Lord and billionaire investor Christopher Flowers.

Source Washington Post

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Sallie Mae Sues Spooked Suitors

    Oct 9, 07 5:45 AM CDT
    Sallie Mae Sues Spooked Suitors College student lender Sallie Mae is suing a group of private equity firms and banks that are backing out of a $25-billion buyout deal. The group—J.C. Flowers & Company, Friedman Fleischer & Lowe, JP Morgan Chase and Bank of America—had set a deadline of today for negotiating new terms, or they'll walk away from the deal, despite a $900-million breakup fee, reports the New York Times. More »

  • $25B Sallie Mae Buyout on the Rocks

    Sep 27, 07 9:52 AM CDT
    $25B Sallie Mae Buyout on the Rocks Sallie Mae doesn’t look like such a bargain at $25 billion anymore, and J.C. Flowers & Co. is trying to renegotiate—or escape—its deal to acquire the student lender, citing the credit market implosion and legislation to reform student loan practices. It’s the kind of deal once considered unbreakable, the Wall Street Journal says, but private equity is in disarray. More »

  • Loan Giant Sallie Mae Goes Private

    Apr 17, 07 8:37 AM CDT
    Loan Giant Sallie Mae Goes Private A group of investors is buying student lending giant Sally Mae for $25 billion, even as Capitol Hill debates reducing federal subsidies for student loans. The company—which began as a quasi-public agency—will be taken private by Bank of America, JPMorganChase, and private equity houses J. C. Flowers and Friedman Fleischer & Low. More »

Student loan giant Sallie Mae has dropped its $900 million lawsuit against a New York investment firm.   (Getty Images)
Student loan giant Sallie Mae has dropped its $900 million lawsuit against a New York investment firm.   (Associated Press)
Student loan giant Sallie Mae has dropped its $900 million lawsuit against a New York investment firm.   (Getty Images)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (
1
 of 3)

Tags

credit crisis • lawsuit • JPMorgan Chase • private equity • Bank of America • student loans • Sallie Mae • JC Flowers and Co • SLM Corp


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular

Loading...

Other Business Stories

What is Newser?

2008 Codie Finalist

Face it: there's too much news. At Newser a team of editors and writers culls the most important stories from hundreds of U.S. and international sources and reduces them to a headline, picture, and two paragraphs. It's the Newser guarantee: we can take any report or column or video and pack what you need to know into 120 words or less. Newser's short-form aggregation, visual format, and unique information tools help you get more of the kind of news you want, in a quicker and more entertaining way. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »