RESTON, Va., Oct. 8 /PRNewswire-FirstCall/ -- SLM Corporation (NYSE:
SLM), known as Sallie Mae, announced today that it has filed a lawsuit in
Delaware Chancery Court against the buyer group, which includes J.C.
Flowers & Co., JPMorgan Chase and Bank of America. The lawsuit seeks, among
other things, a declaration that the members of the buyer group have
repudiated the merger agreement, that no Material Adverse Effect has
occurred under the merger agreement, and that Sallie Mae may terminate the
merger agreement and collect damages of $900,000,000.
(Logo: http://www.newscom.com/cgi-bin/prnh/20030617/SLMLOGO-a )
On October 3, 2007, Sallie Mae notified the buyer group that all
conditions to closing of the merger had been satisfied, and set November 5,
2007 as the closing date of the merger. In response, the buyer group sent a
letter to Sallie Mae on October 8, 2007 asserting that the conditions to
closing of the merger have not been satisfied because of, among other
things, the alleged occurrence of a Material Adverse Effect under the terms
of the merger agreement.
Albert L. Lord, Chairman of Sallie Mae's Board of Directors, said "We
regret bringing this suit. Sallie Mae has honored its obligations under the
merger agreement. We ask only that the buyer group do the same. We are
prepared to close under the contract the parties signed in April."
SLM Corporation (NYSE: SLM), commonly known as Sallie Mae, is the
nation's leading provider of saving- and paying-for-college programs. The
company manages $153 billion in education loans and serves nearly 10
million student and parent customers. Through its Upromise affiliates, the
company also manages $18 billion in 529 college-savings plans, and 8
million members have joined Upromise to help save for college with rewards
on purchases at nearly 70,000 places. Sallie Mae and its subsidiaries offer
debt management services as well as business and technical products to a
range of business clients, including higher education institutions, student
loan guarantors and state and federal agencies. More information is
available at http://www.salliemae.com. SLM Corporation and its subsidiaries are
not sponsored by or agencies of the United States of America.
SOURCE SLM Corporation
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Related links:
http://www.salliemae.com/
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20030617/SLMLOGO-a
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
http://www.prnewswire.com/comp/827187.html /
CONTACT:
Investors, Steve McGarry, +1-703-984-6746, or
Media, Tom Joyce, +1-703-984-5610, both for SLM Corporation
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