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Article: Sallie Mae Says Planned Buyout May Fail
- Article from:
- AP Online
- Article date:
- July 11, 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 - The planned $25 billion buyout of SLM Corp. could be in jeopardy as the investors that agreed to buy the nation's largest student lender, commonly known as Sallie Mae, say congressional legislation could kill the deal.
Sallie Mae disputes that. The takeover deal, one of the largest private buyouts ever, is led by private-equity firm J.C. Flowers & Co. At issue are the two sides' interpretation of their acquisition agreement, signed in April, under which significant negative developments can nullify the deal.
Legislation that passed the House Wednesday would cut in half the interest rate on government-backed student loans - a move that would be paid for by a roughly $19 ...