Tuesday, October 23, 2007
The attorneys for the buying group led by J.C. Flowers and Sallie Mae held a conference call with Vice Chancellor Victor Strine over Sallie Mae's request for an expedited hearing, because it says that the restrictive covenants in the merger agreement interfere with its business operations and prevent it from shopping the company. The Chancellor repeatedly asked why the parties did not agree to terminate the agreement. Finally, the buyers agreed to waive the restrictive covenants so as to avoid the expedited hearing. A trial is likely for early next year, unless the parties arrive at a settlement. NYTimes, Provision Is Waived in Sallie Mae Merger Case, but Underlying Dispute Remains ; WSJ, Flowers Drops Sallie Proviso.