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Article: Sallie Mae Agrees to $25B Takeover
- Article from:
- AP Online
- Article date:
- April 16, 2007
CopyrightCopyright 2007 Associated Press/AP Online. This material is published under license from the publisher through YellowBrix, Alexandria, Virginia. All inquiries regarding rights should be directed to YellowBrix. (Hide copyright information)
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WASHINGTON - A group of investors announced plans Monday to buy Sallie Mae, taking the nation's largest student lender private in a $25 billion deal that comes as some regulators call for tougher standards and lower federal subsidies for the $85 billion college loan industry.
Private-equity firm J.C. Flowers & Co. and three other investors will pay $60 per share for the Reston, Va.-based SLM Corp., commonly referred to as Sallie Mae. The sale price represents a nearly 50 percent premium for Sallie Mae's previously sagging stock before takeover rumors emerged late last week.
SLM shares traded up more than 17 percent on the New York Stock Exchange after the buyout was announced Monday.