Sallie Mae Will See JC Flowers & Co In Court!

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When JC Flowers and the other buyers declared a MAC gave them the right to walk away or change the terms of their bid to acquire Sallie Mae, we said that it was "highly unlikely" the deal would ever close. This put us in dissent to most observers, who thought the talk of lawsuits and MACs was simply hard-ball negotiating and were convinced the deal would still get done.
Well, the odds shifted in our favor yesterday when Sallie Mae filed a lawsuit in the Delaware Chancery Court seeking to force the JC Flowers group to pay the $900 million break-up fee. They are asking the court to rule that no material adverse change has occurred.
We hate to said "told you so" but, you know, we totally did.
SLM Escalates Battle, Sues J.C. Flowers Group [Wall Street Journal]

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