Tuesday, October 16, 2007
The group that contracted to buy Sallie Mae filed a response in Delaware Chancery Court to the company's breach of contract case yesterday, saying it was not obligated to go through with the LBO. It also proposed a mutual termination of the agreement that would still allow the sides to argue over whether the buying group had to pay the $900 million termination fee. In that way, it said, it would eliminate Sallie Mae's concerns about whether it was still subject to the agreement's terms. WPost, Investors Punch Back at Sallie Mae; NYTimes, Sallie Mae Deal More Shaky; WSJ, Jilted SLM Is Asked
To Forget About Offer.