Sallie Mae being sold to private-investment funds for USD 25 billion

Sallie Mae being sold to private-investment funds for USD 25 billion

Sallie Mae is the largest U.S. student loan company. Media group Wall Street Journal has now reported that they are now being acquired by two private-investment funds along with JPMorgan Chase & Co and Bank of America Corp.

The deal is worth around USD 25 billion. The report added that the JC Flowers & Co. and Friedman Fleischer & Lowe LLC are planning to take a 50.2 percent stake in Sallie Mae. The rest of the stake would be picked by JPMorgan and Bank of America.

WSJ added that they are paying $60 per share for the student lender though none of the involved deal has publicly commented on this rumor.

New York Times had already reported that the talks of this acquisition deal are in progress and this new helped the company’s share to gain at the stock market.

Market analysts claim that by paying USD 60 per share for the company, the investors are paying more than 18 times anticipated 2007 earnings of $3.67 per share.