Sallie Mae $25 billion buyout ends up in court
Court Alerts
[##_1L|1212325953.jpg|width="101" height="102" alt=""|_##]The planned $25 billion buyout of U.S. student lender Sallie Mae has ended up where many said it would -- in court. Sallie Mae said late on Monday that it filed a lawsuit seeking a breakup fee of $900 million from the consortium led by J.C. Flowers & Co, which last week proposed to cut its bid price for the lender citing a recent credit market squeeze and legislation that slashes subsidies to student lenders.
Sallie Mae's lawsuit seeks a declaration that the buyer group has reneged on the merger agreement, that no "material adverse change" has occurred, and that Sallie Mae may terminate the takeover and collect the $900 million.
A material adverse change (MAC) is a condition that could cause a substantial reduction in earnings power and it can give buyers or lenders a "walk right" from their obligations.
The lawsuit is being seen by many as a hard-ball attempt by Sallie Mae to force the buyer group to stick to the original deal, in which the group offered $60 a share, or come up with something closer to it than its revised proposal of $50 a share, or $20.6 billion offer, plus extra payments depending on how the company performed.
"We are prepared to close under the contract the parties signed in April," said Sallie Mae chairman Albert Lord in a statement late on Monday. "Sallie Mae has honored its obligations under the merger agreement. We ask only that the buyer group do the same."
Related listings
-
Giuliani law firm sued by high profile Texan
Court Alerts 10/09/2007A prominent Texas Republican has sued Rudy Giuliani’s law firm and a close friend and partner of Giuliani’s, Kenneth Caruso, alleging that Caruso, the firm and others "schemed and conspired to steal $10 million."J. Virgil Waggoner, a Houston business...
-
Watada's second court-martial on hold
Court Alerts 10/05/2007[##_1L|1027322463.jpg|width="130" height="98" alt=""|_##]The Tuesday court-martial of 1st Lt. Ehren Watada at Fort Lewis has been put on hold by a U.S. District Court judge, who issued his ruling late today. This would have been the second trial for ...
-
E*TRADE hit with class action
Court Alerts 10/05/2007[##_1L|1277350565.jpg|width="120" height="138" alt=""|_##]Coughlin Stoia LLP yesterday filed a class-action suit against E*TRADE Financial Corp., accusing the company of violating the Securities Exchange Act of 1934. The firm is filing suit on behalf...
Is Now the Time to Really Call a Special Education Lawyer?
IDEA, FAPE, CHILD FIND and IEPs: The Individuals with Disabilities Education Act (IDEA) guarantees all children with disabilities to a free appropriate public education (FAPE). FAPE starts with a school’s responsibility to identify that a child has a disability (Child Find) and create an Individualized Education Program (IEP) to suit the needs of the child.
Forte Law Group is one of only a very few law firms within the state of Connecticut that is dedicated to exclusively representing families and children with special needs.
Parents need to be persistent, dedicated and above all else aware of the many services and accommodations that their child is entitled to under the law. As early as this point within your child’s special education, many parents will often find themselves in the situation asking, “is now the time to really call a special education lawyer?” Here are a few things to consider when asking yourself that question.