Thursday, April 19, 2007
In an interview in the Washington Post, Sallie Mae's Chair Albert L. Lord says selling the company to a private equity firm was the best way to protect the shareholders from the whims of Congress. He said he first considered the idea in late 2005, but the high stock price made it infeasible at that time. The idea took off after the Democrats took control of Congress last November, and the bidding process quickly came down to two rivals -- J.C. Flowers & Co. and The Blackstone Group. J.C. Flowers has agreed to buy the company for $25 billion. See WPost, Aiming to Free Sallie Mae From Red Tape.