Thursday, August 16, 2007
Shareholders of Sallie Mae voted to approve the $25 billion buyout of the company by a consortium of buyers led by private equity firm J.C. Flowers, amid serious doubts that the deal will close, at least at the original $60 per share price. The buyers have stated that federal legislation cutting back on government subsidies of student lending is grounds for backing out of the deal. In addition, the costs of borrowing money have increased since the deal was struck. Sallie Mae's management, however, insists the deal will go through. WPost, Shareholders Agree to Buyout Of Sallie Mae.